what's the options and best exit strategy
my friend has a rental that's way under water, According to Zillow it's worth about 160k, while he owes the bank 230k. i know Zillow is not the more accurate source, but 70k is pretty significant.
the house is rented out, he's breaking even after rent, tax, insurance and mortgage. He's on a 10 year interest only loan with 3.99%.
What's his best exit options? Pros and cons
is short sale or foreclosure available to him? both himself and his wife works full time job.
he'd need to show hardship for short sale, right? and for foreclosure, that will trash his credit for years.
What about other options?
thanks in advance.