Anyone going through shortsale in US before R2I

[R2IB42010]

Not sure if this topic belongs in this category or if there is another thread on this topic. I found one about foreclosure but not updated in the recent past...

I want to R2I due to family commitments - Take care of my Dad. I have a townhome that has lost 25% value and need to dispose before I can move back. I was wondering if anyone here went through the short sale route. With the current market conditions, renting might not be a great option as I will end up paying for the deficiency in my monthly payment after the rental value.

Any experienced hand's input will be highly appreciated.

Thanks in advance for your time

[kkr]

Not sure if this topic belongs in this category or if there is another thread on this topic. I found one about foreclosure but not updated in the recent past...

I want to R2I due to family commitments - Take care of my Dad. I have a townhome that has lost 25% value and need to dispose before I can move back. I was wondering if anyone here went through the short sale route. With the current market conditions, renting might not be a great option as I will end up paying for the deficiency in my monthly payment after the rental value.

Any experienced hand's input will be highly appreciated.

Thanks in advance for your time

What questions do you have? I can probably help.

[R2IB42010]

Hi kkr,
Thanks for the followup. I have a 1st loan with Bank Of America and 2nd loan (HELOC) with PNC.
If I were to do a short sale, I am a bit unsure about my assets being a hurdle or eyesore for the banks. I currently have Savings/Checkings/401K/Roth/Rollover ~100K. The deficiency portion based on the fair market value of the property also comes to about 110K.
When providing the fiinancials to the lenders during a short sale, can they demand liquidation of these assets?
I can distribute some of the checkings/savings to India and local friends. Will that be an issue?
I am in a recourse state - Maryland.

Let me know if you need any additional details.

Thanks in advance.

[oasis138]

Hi kkr,
Thanks for the followup. I have a 1st loan with Bank Of America and 2nd loan (HELOC) with PNC.
If I were to do a short sale, I am a bit unsure about my assets being a hurdle or eyesore for the banks. I currently have Savings/Checkings/401K/Roth/Rollover ~100K. The deficiency portion based on the fair market value of the property also comes to about 110K.
When providing the fiinancials to the lenders during a short sale, can they demand liquidation of these assets?
I can distribute some of the checkings/savings to India and local friends. Will that be an issue?
I am in a recourse state - Maryland.

Let me know if you need any additional details.

Thanks in advance.

Unless I am completely wrong they cannot touch your 401(k) /retirement assets...however some states might have en exception to that rule.

[deeppurple]

Unless I am completely wrong they cannot touch your 401(k) /retirement assets...however some states might have en exception to that rule.

That is what I also heard -- your retirement assets are protected -- not sure about Saving/Checking -- if the amount is large, you might want to send it to India (assuming you will have to take care of move and initial settlement)

[venkat786]

Unless you show hardship (layoff, divorse,death) its very difficult your short sale is accepted by your lender. Since you also have a second mortgage its more difficult.

[R2IB42010]

oasis138, deeppurple and venkat786,
Thanks for taking the time to review my query. Appreciate it much.
I too am under the impression that retirement assets cannot be forced for mortage settlement. But, I will do some more research and update here. If anyone else has inputs, please feel free to share.

Is there any limits on fund transfers from US to India to my NRE? If I did a 10 or 15K in a wire transfer, is that going to be an issue or is there any additional paperwork/audit?

venkat786,
I had a layoff in Jul-2010 (last month) and right now found a 3 month short term assignment. In certain scenarios, I wish I hadn't started this short term assignment as that is now a hindrance for my hardship:(:(

Thanks again for your time.... more inputs are definitely welcome..

Regards

[oasis138]

oasis138, deeppurple and venkat786,
Thanks for taking the time to review my query. Appreciate it much.
I too am under the impression that retirement assets cannot be forced for mortage settlement. But, I will do some more research and update here. If anyone else has inputs, please feel free to share.

Is there any limits on fund transfers from US to India to my NRE? If I did a 10 or 15K in a wire transfer, is that going to be an issue or is there any additional paperwork/audit?

venkat786,
I had a layoff in Jul-2010 (last month) and right now found a 3 month short term assignment. In certain scenarios, I wish I hadn't started this short term assignment as that is now a hindrance for my hardship:(:(

Thanks again for your time.... more inputs are definitely welcome..

Regards

I regularly have transferred 10k via NRE route....however i am sure there are daily/monthly limits....you can speak to them and space it out.

[mpandi]

Unless you show hardship (layoff, divorse,death) its very difficult your short sale is accepted by your lender. Since you also have a second mortgage its more difficult.

Thats not true always. One of my friend recently went through short sale before he moved to India. He had a job that time. He went through experienced real estate agent to guided him thru the process. He still works in India for the same company.
If you want to do short sale then stop paying monthy due. Don't keep anything in savings and checking.

[venkat786]

My friend wired 90k at one shot to buy a property in Khammam. So its possible.