What if I have an investment property that is worth less then what is owed and I can’t afford to pay any longer-is there a way to not pay balance?

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What if I have an investment property that is worth less then what is owed and I can’t afford to pay any longer-is there a way to not pay balance?

This is an investment property that I am losing money on due to the chance in the neighborhood. It is no longer safe to rent and maintain. I am losing money every month, but I have 2 other properties I’d like to keep. What is the best way to work this?

Asked on June 4, 2009 under Real Estate Law, Wisconsin

Answers:

J.V., Member, New Jersey Bar / FreeAdvice Contributing Attorney

Answered 12 years ago | Contributor

If you own the property you basically have very cut and dry options. You can continue to pay the mortgage and taxes on the property, you can attempt to sell the property and maintain until it sells, or if you cannot afford it and you cease making payments it will eventually go into foreclosure.

These are pretty much your options and in deciding how to proceed you need to weigh the benefits and the possible negative repercussions. Foreclosure will hurt your credit, if the home sells for less than what it owed a balance may remain for which you are responsible.

You should call a local attorney who may be able to point you in the right direction by reviewing your financial situation and helping come to the best solution for you


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