Homeowner 'rescue' a lose-lose

Home Sale Hindsight

Q: A few years ago, I paid $500,000 for a condo as part of an investment strategy recommended by my now ex-husband’s mortgage-broker relative. We received $10,000 and rented the home back to the former owner, who got enough money to pay off her debt.

Now I’m divorced and the place is worth only about $200,000, plus the former owner/tenant has fallen behind on the rent. She’s trying to buy it back from me on a short sale, but might not be able to qualify to buy the place. My credit is ruined (from the short sale and from defaulting on the payments because the rent stopped coming in), I’m stuck with this upside-down home, and I’m starting to feel like I’ve been taken advantage of. My only goal in this whole thing was to support my husband’s investment dreams and help this woman stay in her home.