All too often I speak with homeowners who at some point decided the best way to deal with their over-leveraged real estate was to rent it out. Renting at a loss to maintain a property that can't be sold traditionally rarely works out well, and it is usually within a few years these same homeowners seek new alternatives to finally get out of the home.
Unfortunately, pursuing a short sale as an investor-owner rather than an owner occupant always lead to a tougher short sale and more tax liability issues. While lenders are generally easier on owner occupants seeking short sales, they are much tougher when dealing with those who have moved away and rented the property out. In these situations lenders are much more likely to:
- Require a default to