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walking away from a property

Posted on: 28th Jul, 2010 12:56 pm
okay, here's the situation in a nutshell: i got divorced last year. i just refinanced my current home in my name only in a 30yr fixed loan. i have a rental property that is super "underwater" in the mortgage. the monthly cost of keeping this property after i apply the rent is about 1200.00 (it just adjusted up). my ex-husband (we still co-own) cannot contribute towards this & i can no longer afford to pay the entire amount myself. so....should i just stop paying the mortgage & let it go into foreclosure? i wont need to refinance my current house so i'm willing to let my credit rating take the hit.
Hi dogwood!

Welcome to forums!

You can let the rental property go into foreclosure. However, you would be liable for paying the deficient balance, if any, resulting from the sale of the property.

Feel free to ask if you've further queries.

Sussane
Posted on: 28th Jul, 2010 10:49 pm
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