r2i forum

lowesisland;75152We need to sell our house before we can R2I.
Selling is really challenging in this market. Does anyone have any idea about
short sales, lieu in foreclosure stuff ?[/quote]


Will you make money by selling or break even or are you upside down?

lowesisland;75301House is in Sterling, VA.
Currently I am upside down on the house.
Rent will cover around 80% of the mortgage payment.

I was exploring if I can hand the keys to the bank and walk away.
In that case I will loose my equity in the house and credit.[/quote]
I doubt if they let you do that unless you declare bankruptcy. There may be be lot of downstream affects and it may prove to be very costly.

lowesisland;75330Declaring bankruptcy will certainly ruin the credit history for 10 years.[/quote]
But walking away may have more damaging consequences in the longer run. What's your current status and do you plan to come back to US? Remember the bank will have most of your credit and personal information to determine if they can retrieve all the loan amount.

lowesisland;75301House is in Sterling, VA.
Currently I am upside down on the house.
Rent will cover around 80% of the mortgage payment.

I was exploring if I can hand the keys to the bank and walk away.
In that case I will loose my equity in the house and credit.[/quote]

You need to check if deficiency judgment is possible in your state. You can google to find out the same.

If it is not possible, your only loss is your credit history, and if you are r2i'ng, the impact will be minimal.

If otherwise, I would be curious to know as to what you find out.

lowesisland;75301House is in Sterling, VA.
Currently I am upside down on the house.
Rent will cover around 80% of the mortgage payment.

I was exploring if I can hand the keys to the bank and walk away.
In that case I will loose my equity in the house and credit.[/quote]



How much are you down? In real $.

If you have firm plans to r2i and your home has gone down 50k, i would just cut the losses and let it go into foreclosure..

Just enjoy it for the next 2-3 months when the foreclosure process works its way thru. It may even take longer for the process .. ( I hear there's 7 month backlog in the foreclosure process)

Bear in mind, the northern VA is expected to suffer atleast another 15% (some say 25%) decline from today's prices. You are looking at another 5+ years for market to reach the price you paid...

It makes no sense to throw more money into a bad deal.... There's nothing like hanging around for spring and hoping it will turn around..

In the meantime, you can also look for a bakra who's out there looking for a "deal"..

Cut your losses and scoot ! Don't let emotions get into the decision making process.. (That's capitalism!)

OTH, if you plan to live in Northern VA for another 5-8 years, you can hold on.. (assuming you are not strectched paying the mortgage..)