I've owned my primary residence in Maryland for 27 years. Five years ago I bought a rental property.

The last renters skipped out on a few months rent plus wrecked the place. I had to paint, buy new carpet, new washing machine etc...

New renters haven't paid their rent and I can't afford to pay that mortgage without rent coming in. The rent received does not cover the mortgage. I'm about $600 in the hole.

If I have to carry this mortgage again without any rent coming in it will put me under.

Can I do a short sale or foreclose without being in danger of losing my primary residence?

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Can I do a short sale or foreclose without being in danger of loosing my primary residence?

To foreclose is what the lender (bank, etc.) would do. You mean to ask whether you can allow foreclosure to happen.

A short sale is an agreement between the lender (mortgagee) and you, alllowing you to sell mortgaged property for less than the full amount owed. So whether you can keep your primary residence in a short sale would be up to the lender.

If you fail to make the payments and thus allow the property to go into foreclosure, I imagine the lender would ask for a deficiency judgment. If they get one, it would become a lien on your other property, including your primary residence. Maryland has a homestead exemption:

"Owner occupied residential property to $21,625 (husband and wife may not double)
Property held as tenancy by the entirety is exempt against debts owed by only one spouse ..." Maryland Bankruptcy Exemptions - MD Homestead Exemption - Maryland Bankruptcy Law :: Legal Consumer.com (http://www.legalconsumer.com/bankruptcy/bankruptcy-law.php?ST=MD)

Probably. If you brought the property specifically to rent it then it is commercial rental property. And it should be kept that way.

I'm guessing you didn't do enough homework before becoming a landlord. How could you let a tenant skip out on a "few" months rent? Why weren't they given a pay or quit notice when the first became late? What references did you get? Before renting? Did you sue them for damages?

Why hasn't the new renters paid? Why haven't you given them notice immediately?

I agree you should get out of the landlord business because you don't know how to handle it.