Dave T, Thanks for all the info. Here are some more details about the property and my situation.
The condo is located in Orlando, Florida. I owe $185,782. I paid $212,000. There is a major over supply of condos there. Fourclosures left and right. Lots of investors just like me tried to speculate and are loosing big time. I have a renter now, paying $1,100/month. My mortage is interest-only, taxes, and insurance, monthly is $1,855 and Condo fee is $225. Total monthly COO is $2,080. My monthly NOI is ($980), and this doesn’t factor in any other costs (vacancy, maintenance, etc).
There is one pre-fourclosure in the same community and same model as mine, that was priced at $132,000. Not sure what it closed at.
I don’t see how a lease-option would work, because I don’t think lease-options can charge that much more above market-rent for rent credits. The rental market is $1100 a month, how much more could I charge over that?
What I am contemplating doing is to contact my renter, and offer him to buy the condo at what I owe via a Land Contract (thanks for that suggestion). If they want the title, I may have to conceed to that. What’s my risk then? They default on payments, I default on my payments to existing lender, existing lender fourcloses. I can accept that risk.
Regaurding short-sales, (maybe this is a quetsions for the short-sale forum) lets assume my renter doesn’t want to take my offer. If a lender looks at my finances, techincally I can affort the payments. Do I have to some how show that I can’t afford the payments for the lender to consider a short-sale?
Regaurding Jugdements, what are lenders doing these days when investors that speculated lost and are entering fourclosre? I have other properties. Should I try to hide my ownership in those properties to prevent them from trying to put liens on them?
Thanks. I appreciate the advice.