The Stop Foreclosure Institute ofOrlando recently received a question from Richard. “I accepted a job transfer and had to move. Unfortunately we were upside down on the house.
I decided to rent it out rather than short sale it. The renters just moved out. I just checked the house. They trashed it!
I could rent the house out again, but I would have to spend several thousand dollars fixing it up first. What would you recommend that I do?” Richard asked.
Click here to discover how other sellers successfully did a short sale and avoided foreclosure.
This is a classic example of when a short sale is the right option. Rather than limping on with a wound you are able to get rid of the upside down debt and move on with your life.
The banks received a bailout. Where is the bailout for the common man? A rental that is losing money every month is like a cancer. Left untouched it just gets worse and worse.
Unless you have a lot of cash to treat the problem, then it will eat away at your finances month after month. You could fix up the house and rent it out again. But, you risk having the same thing happen all over again.
If you are able to rent it and cover all the costs, then I would recommend you keep the home. If not, then I would recommend you short sell it.
If you can break even, then the house will be a good investment as the real estate market recovers. However, you will always risk large unexpected costs like the one you are experiencing right now.
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