There are real estate investors today who simply bought at the worst possible time. The time running up to April of 2007 when the national median home price hit its peak. Many other investors who have been successful throughout their careers chose to stay out of much of the buying frenzy that led up toselling in bulk the crash, seeing a bubble forming and staying on the sidelines.

Nonetheless, there are those who purchased rental properties then and have had a rather difficult time getting out from under them while simultaneously trying keeping their credit profiles in check.

When a mortgage balance is greater than the current market value of the property, the investor will typically keep the property in the portfolio and wait for prices to recover. In fact, home prices have been on a steady increase for the past two years and many are finding their equity has returned. For those still either upside down or near it, selling means coming to the closing table or negotiating a short sale. However, a short sale is viewed rather harshly by lenders and treat such a sale in nearly the same manner it treats foreclosures and deeds-in-lieu. A short sale should be the last resort if a property owner must sell a home and get out from under the mortgage payments.

Another option might be to bundle the properties together and sell in bulk. In this fashion, the combined equity from all may offset other units that are indeed upside down. This will take a bit of legal work to put all properties under one legal tent with regard to title but it can be done and the buyer can peel each unit off one by one to sell when needed. No investor really ever wants to be in such a situation and you can bet those that are in fact there right now more than likely got caught up in a crazy real estate market buying with their hearts and not their heads.