Our father passed away in January of 2015. His home has been on the market in small town Wyoming. It appraised for $212,500 in April of 2015. Since then the economy has gone south and we have continually dropped the asking price over this time and we currently have the house listed at $164,000. We rarely even get looks (town pop is around 10,000 and there are nearly 300 houses for sale at the time). Our realtor tells us not to get our hopes up as the economy will not get better for a long time. The house is in a great location but it does need updating. My brother and I are making mortgage payments on the house along with utilities and maintenance to keep it up (approximately $1500 month). The balance on the house is around $115,000 and there is a $17,000 line of credit. I feel we are just throwing money away. Now if we sell the house, after realtor fees and the inevitable inspection fixings we probably won't walk away with much of anything. We don't want to rent it either!...Here's my question: If we let the house go back to the bank, what penalties would we incur? Would there be taxes or credit issues? Any help or options would be great. TIA
