Underwater Investment Property

I purchased a rental house 10 years ago that has never been profitable. Over the last 10 years I have had to make several mortgage payments out of pocket when I could not find a tenant. I am severely under water, and can’t find a tenant. The house is worth 51K, and I owe 76K. The home is located in the South Suburbs where there is little to to growth or desire for most to live in that area. I have an EXCELLENT credit score (760 credit score), but I am tired of paying the mortgage out of pocket. as it is eroding my childs college fund. I am trying to do the right thing, but I am losing sleep and have become snappy at my spouse and family. It consumes me day and night and I think I am going to do a deed in lieu of foreclosure. I am going to pay January 2014 mortgage payment, but if I can’t find a tenant in February I am done!!! Please offer your expert advice! I trust and value your opinion. PLEASE HELP…

Terry Says:  This is a truly tough decision to make.   Allowing a foreclosure will really ruin your stellar credit report –and will certainly cost you down the road.  You may not even be able to co-sign for a PLUS loan for your child’s college (even if you want to).  So I would suggest doing everything you can to “advertise” this property for rent.  Go to your church, for example, because there are many people who have lost their homes, but now have jobs and want to rent — and a church or civic group may not only know about them, but may offer to pay a few months rent to get them started on a new life.  Check with local real estate agents, who may want a commission for a rental, but may also know of people who lost their homes, but still have jobs and can pay rent.   Even losing a little bit each month on a rental would be better than a foreclosure on your record.  So try to be creative before giving up!