Despite slight improvements in the housing market, many consumers continue to struggle with a less than perfect housing market.  The Wall Street Journal reports that many homeowners cannot sell their old homes after they have relocated for new jobs.  As a result, many are exploring creative options for dealing with their new living expenses and the expenses still attached to the old residence.  The have now been the dubbed the “Reluctant Landlord.”  Some are hoping to use the leasing options to get them through until the market rebounds and the property eventually sells.  Others simply are not able to afford the total upkeep on two homes.  Essentially, the concept is that some money coming in is better than nothing.  The landlord option may be a good fix for a temporary leak.  It can help you get through a short-term financial crisis with minimal impact to your credit history.  The downside is that the landlord business is not without risk and considerable expense.  Many are only able to lease their former homes by reducing the rent to less than the mortgage payment.  The homeowner is still left holding the tab for the balance of the mortgage payment each month and all the extras like insurance and taxes.  The other unknown variable is occupancy.  If your tenant leaves without giving you notice until the next payment is due, you are then stuck with an additional unplanned expense.  Probably the most unnerving aspect of being a landlord is the condition of a home after a tenant leaves.  New consumer reporting industries were born out of the aftermath of destructive tenants.  Just replacing a destroyed carpet one time before you sell or re-rent the property can consume your savings and drive you farther into the landlord money pit.

At the end of the day, the real question is whether it’s worth the emotional and financial stress to keep a house that is simply increasing your debt?   If you are in a housing market that is still depressed by the recession or you are still struggling with a job loss or reduction, a temporary plug is not going to make your situation better.  The best solution for you may be tackling all of your debt issues upfront through bankruptcy.  Bankruptcy provides immediate, long term relief rather than a temporary fix.  Instead of increasing your debt obligations, which in turn affects your credit history, bankruptcy works to reduce or eliminate your debt obligations.  Contact a qualified bankruptcy attorney in your area to review your financial situation and all of your debt management options.