Hi,

I was married and we owned our home and 2 rental properties. We have since divorced and now I have all 3 houses. Well the market crashed here in Florida and I can't get a renter for one of the rentals and it is too hard for me to make all 3 mortgage payments. I am thinking of just foreclosing on the one rental that I have not been able to get a renter for. (there are 100's of rentals in the area). My main home is worth about $40,000 under what I owe. My rental in question is worth about $15,000 under what I owe. My other rental is worth about $8,000 under what I owe so as you can see I have no equity to help out.
What I am trying to figure out is that if I stop making the mortgage payment on the one rental, can the bank sue me or make me pay any part of the mortgage? How does the foreclosure work? Should I file for bankruptcy instead? I have about $20,000 in other debt also.
Please feel free to ask me anything needed to help me out, Thanks,

Randy

rockinmommy

Randy, if you stop making the mortgage payments the bank will foreclose on the property. How long it takes them to do it varies greatly. Also, they type of mortgage it is dictates how much they can come after you for after the foreclosure.

From my perspective, as a landlord, here's what I'd like to know........
What is the payment on each of the 3 properties, and how much could you rent each of the 3 for (realistically - assuming you could attract a tenant).

I know you're up against a LOT right now, but if it was me I'd do whatever I could to try to hang on to all 3, BECAUSE the market will turn around, your property values WILL go back up.

Just out of curiosity, what are you doing to market the properties?