Should we continue losing money on home or let it foreclose?

Bought a home with the hope of running a small daycare in it but recently created HOA wont allow..Have since moved out of state for jobs .now renting .The loss every month will only increase as the values tumble, and we cant get more rent due to all the above.Most finacial advice says bad investment let it go.Even if it took 4 years of payments and a market turnaround would still pump about $130,000 more than the gain..i can rebuild my credit score but money lost is just that.

And yes we have tried to sell it at what we owe.Two other in hood have been foreclosed.

Sounds like you've already decided to let it go; probably a wise choice. Sell it for as much as you can get.

You can let it go, but you probably won't be borrowing money at a decent rate for awhile.

have you considered starting a grow op

first i'd see if i could rent it out to someone, then if not that since you know your credit will be ruined with a foreclosure, i'd get as many credit cards and loans as possible. have a great 08'!

Unless you bought this property as an LLC or some sort of corporation, why would you ruin your credit? A foreclosure will destroy your credit to almost nothing. I would sell the home at a loss, pay your debt off over time. But who knows, maybe you鈥檒l be able to apply for a refinanced mortgage in a few months from the government at some low rate. Tough question to answer since we don鈥檛 know your net worth and so forth.