Should I go for house foreclosure or just keep paying monthly payments?

referenceid · Post by **referenceid** » Tue Feb 10, 2009 11:41 pm

I have recently moved to India. I own house in USA. I am not able to decide if I should just walk away from my property by stopping monthly mortgage or just keep on paying untill I find a renter? House value has gone very bad. I'll loose around 80K if I put for sale... based on neighbours experiance, nobody is buying in this market in our area. Not sure what to do. One of the main criteria for me to move to India is to save money while my USA job permits me to stay and work from India. But my mortgage payment is killing my savings. There is no much difference now for me to stay in India or to move back to US. I make around 150k/year and monthly mortgage payments are around 2000$/month. So, not sure what happens if I foreclose/walk away etc. Not sure how my mortgage bank reacts if I walk away. what my liabilities are etc...
I'd appreciate any guidance to deal with this situation. I really want to stop paying my mortgage as I know I am putting my good money to bad. It may take atleast few years to see house value come back to equivalent to the amount I owe on mortgage. But by that time I might have already paid quite a bit of money towards mortgage.
Also, if I go back to US, I do not want to live in the same city as my current house is in.
Please share your experiance, advise.

Thank you.

rajeshamara · Post by **rajeshamara** » Wed Feb 11, 2009 6:37 am

I am also interested to know how one can foreclose. If people start talking about ethical issues good for them. Let them stay put and pay mortgage even though their house is under. For me personally I don't care. I would rather recoup my losses by foreclosing so that I don't pay my mortgage payments. Any suggestions how do I foreclose?
If I stop paying my mortgage payments, will it automatically trigger foreclosure. If HELOC comes into picture how does that alter the equation?

Rajesh

itsmeagain · Post by **itsmeagain** » Wed Feb 11, 2009 6:40 am

referenceid;150850I have recently moved to India. I own house in USA. I am not able to decide if I should just walk away from my property by stopping monthly mortgage or just keep on paying untill I find a renter? House value has gone very bad. I'll loose around 80K if I put for sale... based on neighbours experiance, nobody is buying in this market in our area. Not sure what to do. One of the main criteria for me to move to India is to save money while my USA job permits me to stay and work from India. But my mortgage payment is killing my savings. There is no much difference now for me to stay in India or to move back to US. I make around 150k/year and monthly mortgage payments are around 2000$/month. So, not sure what happens if I foreclose/walk away etc. Not sure how my mortgage bank reacts if I walk away. what my liabilities are etc...
I'd appreciate any guidance to deal with this situation. I really want to stop paying my mortgage as I know I am putting my good money to bad. It may take atleast few years to see house value come back to equivalent to the amount I owe on mortgage. But by that time I might have already paid quite a bit of money towards mortgage.
Also, if I go back to US, I do not want to live in the same city as my current house is in.
Please share your experiance, advise.

Thank you.[/quote]

I think you can afford to pay since you are making $150k US dollars in INDIA. (NOT IN USA). With 150k us dollars in india, you can live like super king!!!

Try to put in short sale, which is better than foreclosure.

MadMax · Post by **MadMax** » Wed Feb 11, 2009 7:34 am

Screw ethics. Protect capital. Foreclose. It is a no-brainer.

www.youwalkaway.com

referenceid · Post by **referenceid** » Wed Feb 11, 2009 8:43 am

I am concerned about the bank coming after the difference money that I owe. I was told that the bank can go back to court for such kind of rulings. Any Idea about such a thing?

sc2364 · Post by **sc2364** » Wed Feb 11, 2009 8:47 am

Screw ethics - I sincerely hope everyone does not think the same way. Business people thinking screw banks because of temporary setbacks, banks thinking screw customers bacause of setbacks and not returning their deposits, insurance companies thinking screw customers, protect cash and not pay out etc. This is a very vicious circle. I believe if a customer is able to afford the mortgage, he/she should pay the mortgage. If he is not able to, he/she should foreclose, file bankruptcy etc. My 2 cents.

direstraits88 · Post by **direstraits88** » Wed Feb 11, 2009 9:13 am

referenceid;151024I am concerned about the bank coming after the difference money that I owe. I was told that the bank can go back to court for such kind of rulings. Any Idea about such a thing?[/quote]

Yes, they can come after you for the difference.. But they seldom do..
To be on the safer side, you need to put your assets/investment/401 savings away from the reach of the american legal system..

If the bank agrees for short sale and you can find a buyer at the lower price, then bank is agreeing to write off the balance.

Your credit score will still take a hit of around 100 points for short sale and around 250 points on foreclosure..

A bad credit score may affect future job prospects in U.S if you plan to return.

And Bad karma will follow you..:emwink:

blrblr · Post by **blrblr** » Mon May 03, 2010 7:33 am

http://www.washingtonpost.com/wp-dyn/content/article/2010/03/26/AR2010032600027.html

Homeowners defaulting on mortgages today may be surprised to learn years from now that they still owe thousands of dollars -- and that a collection agency is coming after them to get it.