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    bb27's Avatar
    bb27 Posts: 1, Reputation: 1
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    #1

    Dec 2, 2008, 10:19 AM
    Investment Property Foreclosure
    We have an investment property that, thanks to the decline of the real estate market, is severely upside down. We do have a tenant in the property, but rent only covers 2/3 of the mortgage. After the lease is up, if we give the house back to the bank, what are the reprocussions? Can they/will they sue us for the difference of what the house is worth vs. the mortgage? :confused:
    excon's Avatar
    excon Posts: 21,482, Reputation: 2992
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    #2

    Dec 3, 2008, 06:36 AM
    Hello bb:

    If you just give it back, they'll sue you for the mortgage. I'd be on the phone with them trying to work out a deal. Maybe they'll accept a short sale. Maybe they'll reduce your payments... I don't know. If you do NOTHING, it's going to hurt worse.

    excon
    Fr_Chuck's Avatar
    Fr_Chuck Posts: 81,301, Reputation: 7692
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    #3

    Dec 3, 2008, 06:58 AM

    Ok, you bought the house and knew how much the mortgage payment was, you also knew or should have known the rental value.

    So from day one you knew rent would only cover about 2/3 of the mortgage payment??

    So the house is under value right now, do you not think in 4 or 5 years the market will go back up?

    Why all of a sudden do you think this is a bad deal when it was a good deal before.
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