Is it better to keep the property?
In most cases, you’ll be better off keeping the property and waiting to sell until you’ve broken even or built up equity. You can keep paying the mortgage down, work with a lender to find out if you’re eligible to refinance to a lower interest rate or rent the property out and use the rental income to pay down the mortgage.
But in some cases, keeping the property might not be worth it. If the home needs a lot of work or repairs that you can’t afford, you may be better off taking the loss — especially if the home’s condition is gradually getting worse.
Explore all of your options and talk to your lender, a real estate agent and/or a CPA before deciding what to do about your underwater mortgage.