If you're stuck with a piece of property you can't sell, there's still hope.
Instead of risking foreclosure and ruining your credit if you can't pay your mortgage, there are other options to consider. Here are a few of them.
Renting out your home
Renting out the home "is a trend we've seen growing in the past year because the market has slowed considerably," says Maurice Ortiz, marketing director for The Apartment People, a full-service real estate brokerage in Chicago.
Owners, developers and investors whose properties haven't sold are finding that having tenants can mitigate some of the costs.
"Why keep the property vacant when an owner can get some money out of it by renting?" Ortiz adds.We're dealing with investors who have bought properties to flip and now can't sell them," he continues, as well as owners "who bought a place and now can't afford it anymore."
According to Ortiz, some developers and investors will list a property for sale and for rent at the same time, and whichever effort bears fruit first is the way they'll go.
The lease should have a cancellation clause built in to protect both the investor/developer and the tenant. It's wise to stay away from a lease without a cancellation clause because the owner could void the lease with little or no notice.
Owners need to be realistic about the rent level, says Ortiz, and try to match the market rate.
Rent to own
Renting to own "is a good way for first-time buyers who may not have stellar credit or the necessary financing at the time of the lease to get into their first home," says Mabel Guzman, realtor at Century 21 SGR in Chicago.