foreclose or not to foreclose
I have a client that has 2 recent foreclosures on investment properties, and a recent chapter 13, his primary residence is losing value. He owes $265K and the house is worth $235K, he found out that it needs $20K in structural issues, new roof $5000, remove broken solar panels $2000, windows/doors $3000 and property is not updated. His payments are $2200 a month. Should he foreclose and rent? The like houses in his neighborhood are renting for $1500. He could stop payments now and save $2200 a month until bank forecloses (possibly saving $20,000) and then save $700 a month on renting after that. SHould he continue to make these high payments on a house with structural and other costly maintenence or foreclose since he has 2 recent foreclosures?