Good point SD Realtor. It does not hurt to try for a short sell. It’s unlikely that the lender will approve a short sale or agree to any kind of relief unless the borrower can prove hardship. But it doesn’t hurt to try.
One thing the OP needs to keep in mind is that for every month that they make a bank payment, it’s one month less of cash they could accumulate.
Now, not from a moral standpoint, but only dollars and cents, the OP might want to continue collecting the rent money, while not making any further mortgage payments. That will give them a cash hoard ($2,700 + $1,750 = $4,450/month) to use on a lawyer as they determine their best course of action. As long as foreclosure can be delayed, they will have $4,450 more per month that they wouldn’t otherwise.
Why pay anymore if you already decided to walk?
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PS: I am a very ethical person in my life. But all the real estate frauds have been so prevalent and glaring with wink-winks from the actors within the industry aiding and abating massive rip-offs.
At this point, I believe that homeowners need to fend for themselves and protect their assets rather than giving the industry a penny more than necessary.
BTW, my course of action is what a turnaround executive at a failing business would most likely follow. If you think of it as a business decision (and not a home) then the answers reveal themselves.
