Another option is to ask your lender for a mortgage modification to lower your payment. Although this is an investment property, some lenders will consider it if it is their best interest. Increased REO inventories, the potential appetite for the specific property in the market and longer foreclosure periods have come into play in many lenders decisions. We have had luck in some cases when the request is properly orchestrated, even if refused prior. Our company works in this field of negotiation. If you would like for us to help, there are no guarantees, but this discovery question would be a free service to you. We have also been successful in negotiating commercial apartment units.

This is an interesting question. A lease agreement is a contract. She is obligated to pay the term of the lease wether or not she moves out. In other words, if she signed a lease agreement to rent for 12 months, she owes 12 months. You as an owner can put it on the market, however, the tenant is called for showings. Would she agree to show the property? If you sell it, what is the value of the property in todays market and what do you owe on the property. Is the property value under what you owe? If it is not, then it is a shortsale. Do you have a hardship? Just a few things for you to think about.
Ron and Debbie Albert
Coldwell Banker Residential Real Estate