Pre-Tax planning Short Sale or Foreclosure

[rfk]

How would you advised a client on what to do since his mortgage payment for his rental is going up due to re-setting, the usual thing going on in the market.? He is asking me what would be best in preplanning this situation. He cannot afford the increase and is not insolvent. Any one have any options or opinions on how to best handle this situation?

Thanks for your help.

Ray

[JoshinNC]

Put out a for sale sign

How would you advised a client on what to do since his mortgage payment for his rental is going up due to re-setting, the usual thing going on in the market.? He is asking me what would be best in preplanning this situation. He cannot afford the increase and is not insolvent. Any one have any options or opinions on how to best handle this situation?

Thanks for your help.

Ray

First option would be selling to the current tenant. If they don't want to or can't afford to buy then you let them know that at the end of their lease they may not have somewhere to live and you do a short sale for what you can get.

[DTS]

Josh

For my information, can this fellow just do a short sale on his own or does he need to obtain permission from the lender to do this?

Thanks,

Dennis