Abandoning a rental house.
I don't want to deal with it, or the tenants any longer. Should I call the lender and tell them I am abandoning it? Should I let it foreclose, whcih will take maybe 6 months? I don't want to renew the insurance, which is why I'd like to be rid of it earlier rather than later. I'm not concerned with the short sale effects, or any of that at this point- just want OUT.
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Personally, I'd notify your tenants they need to make other arrangements. At least do them that "courtesy". You don't have to tell them your filing BK or giving the property up. Just tell them there's gonna be a change in ownership and they have 30, or 60, or whatever number of days to be out.
Your best bet would be to Consult with a Landlord/Tenant Law attny. It's a specialty practice just like BK. Learn what you officially need to do to cover your butt.Filed Ch 7 - 09/06
Discharged - 12/2006
Officially Declared No Asset - 03/2007
Closed - 04/2007
I am not an attorney. My comments are based on personal experience and research. Always consult an attorney in your area to address concerns related to your particular situation.
Another good thing about being poor is that when you are seventy your children will not have declared you legally insane in order to gain control of your estate. - Woody Allen... -
Worth it?
I'm no expert, but...
You might want to discuss a "deed in lieu of foreclosure"
Each state is different, but usually the mortgagor loses the right to pursue a "deficiency judgement" = having to pay back the difference. You simply turn over the deed and abandon the home to the lender.
The reason why many lenders go for this is to avoid the losses due to foreclosure.
In order to do this, you might have to discuss your situation with the lender. Both a short sale and turning over the deed look bad on your record, but probably not as bad as a FC!! Also, you wouldn't have to pay back the difference.
Perhaps you'll have to play a bit of hardball.
They know the costs / time associated with FC, and don't want to deal with a huge delinquent loan in the process. They DON'T need to know your frustrations / etc. regarding the tenants or the condition / value of the home.
Stick to your proposal, while revealing as little personal info as possible. It might even be better just to send them a business letter simply proposing the D in L of F. Although phone calls could be inevitable, it might be best to use letters as much as possible.
Either way, best of luck, and if the tenants are awful be sure to wait until the last possible week to notify them of this.
GOOD LUCK!
Wingnut
I AM NOT A LAWYER. I DON'T EVEN PLAY ONE ON TELEVISION. ONLY LAWYERS CAN GIVE YOU LEGAL ADVICE. ETC., ETC! 
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