Leasing the property may be a good option if the rent covers the mortgage payments and other ownership costs, or if the homeowner can afford a negative cash flow.  If the mortgage payments are not current, the homeowner would need to bring them current and pay any fines or late payment fees. 

Owning rental properties may have a positive tax benefit for the property owner.  As with any decision the homeowner makes regarding refinancing, modifying, or selling a property; the homeowner should consult with an accountant to determine tax consequences or benefits based on their individual situation.

• Allows homeowner to keep property indefinitely.  Mortgage payments will continue to reduce the mortgage principal balance; this coupled with property value appreciation will increase the owner’s equity in the property over time.

• Issues can arise with a rental property, and rent may not cover the full cost of property ownership, maintenance, and vacancy.  If the homeowner is behind in mortgage payments, they must be brought current.  As unexpected ownership expenses may arise over time, property owners should consider if they have room in their budget for vacancies or repairs.

IMPORTANT NOTICE: Guarantee Real Estate is a real estate broker. The service we provide is to assist in the sale or purchase of real property.  We do not negotiate with lenders in an effort to modify mortgages.  It is strongly recommended that you seek appropriate professional tax or legal counsel regarding the transfer of real estate.  Guarantee Real Estate is not associated with the government and our service is not approved by the government or your lender.  Even if you use our service, your lender may not agree to change your loan.  If your home is listed for sale, please do not consider this as a solicitation to list your property..