Should I just walk away from my mortgage if unable to sell before R2I?

rknk0220 · Post by **rknk0220** » Thu Feb 10, 2011 10:22 pm

What are the implications of just walking away (R2I) if unable to sell home even after 3 months of trying? My house will not fetch enough and the difference is not something I want to pay to the bank if I am R2I...

Has anyone done this?

dbs · Post by **dbs** » Thu Feb 10, 2011 10:59 pm

rknk0220;367670What are the implications of just walking away (R2I) if unable to sell home even after 3 months of trying? My house will not fetch enough and the difference is not something I want to pay to the bank if I am R2I...

Has anyone done this?

There have been several threads on the topic. Suggest that you search for those unless a member is kind enough to do it for you.

Personally, I would have no qualms about doing it.
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If I save time, when do I get it back?

rknk0220 · Post by **rknk0220** » Fri Feb 11, 2011 12:32 am

I searched for this info on other threads....could'nt locate it anywhere else. Can someone be kind enough to point me to it......apologies for replicating this as a new thread.

My Roots · Post by **My Roots** » Fri Feb 11, 2011 12:34 am

search with keywords in R2i google search with keyword like, foreclosure, short sale. Look at the related threads that are shown up at the bottom of the page when you open the related thread.

Sid · Post by **Sid** » Fri Feb 11, 2011 1:01 am

http://www.r2iclubforums.com/forums/showthread.php/10583-R2I-Immediately-Dump-the-house-or-not
http://www.r2iclubforums.com/forums/showthread.php/16200-Planning-to-R2I-but-my-house-is-Underwater-!!!
http://www.r2iclubforums.com/forums/showthread.php/6546-Pl-advise-what-to-do-with-house-in-US
http://www.indianrealestateboard.com/forums/showthread.php/10123-Should-I-go-for-house-foreclosure-or-just-keep-paying-monthly-payments
http://www.indianrealestateboard.com/forums/showthread.php/13742-Help-with-foreclosure-decision
http://www.r2iclubforums.com/forums/showthread.php/7741-R2I-and-Home-Sale-in-US-Should-I-foreclose

direstraits88 · Post by **direstraits88** » Fri Feb 11, 2011 8:34 am

Is there a second loan ?

If your r2i plans are firm and you're pretty sure that you won't R2A for atleast 3 years, you are better off letting it go to foreclosure. You may even save some money by not paying the last 3 months before you leave. I think in GA, the recourse filing for any deficiency need to take place within 6 months. When you are ready to leave, write a letter saying lost job,moving back to home country and hand over the key to the bank.

The bank may not bother to go thru the court process after foreclosure to get a deficiency ruling. It's a waste for them.

(On second thoughts, maybe I should pretend to preach some morality first !)

rknk0220 · Post by **rknk0220** » Mon Feb 14, 2011 8:30 pm

There is no second loan....I have done a 10% (30k) down when I bought the house and then put about 10-15k for upgrades. This is the only reason that I am thinking of walking away is to be practical and cut my losses. However, I will not just walk away without trying....I will keep this house in the market for 5 months (3 months before R2I from Mar-May & 2 months after R2I June & July), also am engaging a RE agent to stage the house.

Where do I get information about the specifics of GA (i.e. how many months does it take for the bank to start the foreclosure process.....just to avoid a situation where I stop payment this month and next month someone from the bank is at my door).....if I am waking away, do I need to even let the bank know?

Also, does it make sense to tell the RE agent about R2I and also that in case the house does not sell for 5 months (from Mar-Jul since that is the most active buying period due to families relocating), then I will let this go to foreclosure....

Any ideas?

Lakshya · Post by **Lakshya** » Mon Feb 14, 2011 8:41 pm

[QUOTE] then I will let this go to foreclosure....

I am not sure but what generally happens to your credit after foreclosure? I mean don?t you think you will have problem to get new credit?

rknk0220 · Post by **rknk0220** » Mon Feb 14, 2011 8:47 pm

Credit score in foreclosure cases takes a bit hit....typically a couple of hundred points....and then stays on the credit history for 7 years....

Lakshya · Post by **Lakshya** » Mon Feb 14, 2011 9:02 pm

[QUOTE]Should I just walk away from my mortgage if unable to sell before R2I?[URL="http://www.r2iclubforums.com/forums/showthread.php/23025-Should-I-just-walk-away-from-my-mortgage-if-unable-to-sell-before-R2I"]
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My Answer is Yes and No. If you have visa problem (H1 expiring etc) then just go for it, because you do not have any other option. But if you are on valid H1-GC and you got that virus of ?India Calling? or better opportunity in India then my answer is No. Walking away may be easy for you but it will create problem in future for others. Like now days I heard many bank is giving car loan to people on H1 till they have exp date on visa. Some dealers are not ready to deal with H1. If you want to refinance car loan many website is now asking for A# (GC). So who knows in future they come up with no mortgage to H1.

Also your foreclosure house will give jittery to your next door neighbor. (Which you don?t care). But apart from all this it will mess your credit. I don?t know how credit score is important for you now and in future but it is very imp for me so YMMV.