Updated over 11 years ago on . Most recent reply
Looking for a BP pro to weigh in on my responsibility to the tenants in CT, while the prop. is in a short sale
Hello all,
I really need your expertise on this question. I own a duplex and live in 1/2, renting the other side out. I will be moving to Boston for a new job and at 57 years old, crunching the numbers doesn't make sense to rent out both sides - upside down by 30K. I went through bankruptcy because I was laid off over a year ago and couldn't keep up with my 6K income and expenses. I didn't reaffirm the mortgage with the lender during the bankruptcy.
A CT attorney advised me that the best thing to do was to do a short sale, and then I am able to continue to collect rent from the tenants and work with the bank through the attorney and a real estate agent on selling the property. The tenants lease is up 6/30/13, so we are only taking two months here.
I know the laws can vary from state to state, so if you can provide any feedback on this, especially if you are familiar with the CT landlord/tenant laws, I would really appreciate any and all advice. Thanks for your help. Nancy
Most Popular Reply
I'm still in favor of you looking into doing a deed in lieu. Why did your lawyer advise against it? I'd stop making payments now if you want to get the lender's attention. Tell them you are offering the deed in lieu today. Since your property has no other liens, it's the perfect candidate for a deed in lieu. The lender gets the deed and takes over. Your tenant's lease is good through its end or beyond, depending on how long it takes.
A short sale is only beneficial to an agent, who is the only one who will make any money. The bank loses money and time, and you get nothing. I looked at your loan, the comps and area rents for your property. I do not agree that it is a good investment for a landlord buyer unless your loan balance was at least $75K less. If the cash flow were better, I'd take over your payments today. :)
I do not know CT law that applies to foreclosure or tenants, so take my two cents for what they are worth.