This is just a quick "advice" post as I have come in contact with many folks this week who could not afford their mortgage, or moved out of their house and signed a long term lease with a tenant for less than what they pay on their mortgage.
Your mortgage is $2000 per month....you had to move because of your job, or because you wanted to downsize to an apartment, and then you rent out your home for $1400, leaving a monthly deficit of $600.
If you are going to do this, PLEASE do a careful budgeting session as a family to make sure you can comfortably afford this shortfall. If this $600 is going to make you struggle, it may be better to discuss a loan modification or even do a short sale if your home is worth less than what you owe. I have seen some people get really stuck here, when they finally realize they want to do a short sale, and they now have a tenant locked into a 12 month lease and the tenant will not cooperate with showings, nor moving out early. Just make sure you can afford to still pay the loan. If you can't, lets see if there is a better option for you than renting to help you.
If you have already rented it out, and are in financial trouble because of it, CALL US. I can share the options with you, and we have a strong team of professionals incuding lawyers, financial advisors and accountants, who can help you execute whatever option you deem is best for your situation.
Sean Carroll - Realtor, Associate