[DARISC]

I have a dear lady friend (we go back to childhood) who recently retired and is faced with a very stressful dilemma. Can any of you offer advice to her? Below, I describe her situation as best I understand it, as if it were me who has the problem. I know many here have much experience in real estate and legal matters and I would greatly appreciate any advice you have to offer her.

Her story:

Being underwater, ineligible for loan reevaluation and unable to make the mtg. payments, I am forced to walk away from a four unit apartment building in LA.

I have been living in one of the units and I have a physically challenged relative living, rent free, in another unit. The remaining two units are rented, one at market value, the other, under rent control, at significantly less than market value.

I informed the bank one year ago that I'm walking away from the property and have not made mortgage payments since. I'm waiting for the bank to foreclose and they have not told me when foreclosure proceedings will begin.

In the meantime, I have moved out. I have continued to collect rent from the two rented units and I plan to continue to do so until the bank issues a foreclosure notice, at which time I will inform the tenants and stop collecting rent.

I also wonder, given that the bank is unresponsive when questioned as to when the foreclosure process will begin, whether I should try to execute a short sale and be done with the property altogether, except, of course, the bank...

Bottom line question, what should I do?