deniseloretta
New Member
My husband and I own a rental property that is no longer paying for itself. We can't raise the rent without putting more money into it. We have lost a renter, and cannot afford to take on the payments/ difference ourselves. There is a primary loan, and also an equity line of credit on it, and we cannot sell it for what we owe. We are considering attempting a short-sale transaction, and if that does not work/ or there are risky tax implications, we may have to let it go into foreclosure. Our concerns are A): Is our primary residence/ (or other assets) at risk because of the second loan on the duplex? B): Can we be left to pay taxes on a loss incurred, in either situation (foreclosure or short-sale)? The duplex is homesteaded, because our brother is living there. However, we last lived in it ourselves over 4 and a half years ago. Also, if we stop making payments on the equity line of credit portion of the loan, will it build up over time (will they add the amounts unpaid to the existing balance, so that it will continue to increase)? Thanks in advance for any insight into our seemingly unique situation. These answers have been hard to find online, as well as when talking with people (realtors, brokers, agents).
