Renew lease, or......??
I own a condo in Michigan and have been renting it to a couple since October last year. The lease expires October 2 of this year. I just recently got laid off, and will not be able to afford paying the monthly expenses related to the condo. First of all, they are renting at $122 lower than what I pay on my mortgage for that condo, plus I have to dish out another $175 for the association fee every month. So that is almost $300 every month out of my pocket, plus I have to pay the property taxes on it which are expensive.
I reside in Las Vegas now, and have to pay rent, so I can't really afford to hang on to the condo in Michigan. I see no benefit in doing so..........the housing market sucks, forget about equity, so there's no point. The only thing I see is it is just taking money out of my pocket, money I could use to pay bills here in Las Vegas.
The tenant told me they want to keep renting for another 6 months, but that's it.
At this point, it doesn't make a whole lot of sense to keep the condo even if the tenants want to keep renting it for another 6 months.
Do I need to go through a realtor in order to renew the lease with them? Or is this something I can do by myself?
Either way, I want to get rid of the property. I was thinking, renting the condo for another 6 months to them, while putting it on the market to try and establish a short sale with the bank and a buyer.
Or should I not renew the lease, stop making monthly payments, and then let the foreclosure process take its course??
It's a hard decision to make, I don't like the idea of having a bad credit report, but that is something I can repair over time...........it's not the end of the world. At least a short term sale won't have the full negative impact as a foreclosure will in terms of my credit report.
Right now, my credit is excellent, but would take a huge blow if I went through foreclosure.
At this point, I just don't want to keep throwing away $300 a month, I got laid off, and I need that money to survive.
I admit that I have money saved up and collecting unemployment right now......but I don't want to throw away that $300 every month, and then have to pay more than that when the property tax bills come (summer tax bill was $1600).
What should I do??
I'm thinking of renting it out 6 more months, while trying to get a short sale, through a realtor................good idea?