There are always options whether you have a tenant paying your mortgage for you or you find a buyer that can purchase your house either way will work for you. As long as, your property sits on the market without bringing in some income then things can lead to foreclosure.

Your best option might be to contact an investor that can arrange to purchase your house.

Your best bet is to get a renter in the home asap. Even if you do short sale the property, you will likely be obligated by the banks to pay the shortage- The market will go back up- eventually- get a renter in the house to cover your costs at least and hold on to your asset. With so many foreclosures- there are displaced homeowners who need rentals. Your asset is worth keeping. You can even make a deal with a potential renter to do the repairs (if any are needed) . Rent the house with a triple net lease- where the renter pays for repairs, taxes, insurance as if they are the owners- it is usually done in commercial properties- but I have seen it applied to residential home rentals. Have your attorney draw up the papers- just get the property rented !!!

No need to foreclose in todays market. It is much better for all parties to do a short sale. The banks are more understanding than ever and your credit will not be as damaged. Take a look at my latest blog about how a foreclosure will effect your ability to purchase a home in the future. If you need assistance on conducting a short sale or have questions lease contact me.

It is hard to say what will happen. If you short sale, which is a better option than foreclosing, you could have some tax liability, but if you foreclose, likely not.

These are really questions for a Tax attorney.

I would encourage you to look at the short sale option. There is a company called the short sale network in Jacksonville, Fl and they have a tremendous amount of information on line.

Good luck,

Gary De Pury
Broker-Owner
Bay Vista Realty
Tampa Florida