Rental underwater, want to sell, would bank short? Other options?
I owe like $80k on a rental that is worth maybe $60k. It has been a dog for years and costs me money each month. I have owned it for almost 10 years and would just like to get rid of it. Is there any chance the bank would settle for a discount on a performing loan? Its a local bank, i have paid off 4 or 5 other loans with them in the past and have a good relationship with them. Any other options? Maybe they would release the mortgage and I could pay off the $20k difference over time so I dont have to come out of pocket? I dont want to start asking questions too soon because I'm sure they assume the LTV is much better than it is.