Hello,
I am being relocated to the US (I/Kids are US Citizens - Wife has 10 year VISA). We bought our house here in a rural area for nearly 300K, it went up past 400K in the boom and is now worth around 145-150K. We owe 225K aprox.
We were able to find a buyer and then approached the bank giving them our full financial situation as well as the fact we are leaving no matter what etc etc. Everyone we talked to has asked why we didn't just walk away since we are not coming back but we are attempting to do the right thing.
We are living month to month (some months more effectively than other months) although we have never missed a mortgage payment - might be a negative.
We jumped through all the hoops with the bank (including a proposal for partial payment of the shortfall via a new loan) and they came back with an offer that shortens our payback period and moves us from a tracker to a variable rate. The result is a payment there is no way we could make.
We are now strongly considering walking away and although we have written a final letter, I doubt the bank will budge and allow the sale.
Question : As I said, we are not coming back but you never know the future. What are the consequences of walking away? I have seen many threads on a 12 year statute of limitations but what does that really mean? Does it mean if we returned in 12 years we could buy a house with cash and have no issues (I say cash as our credit score would prob be 0 - we have no savings right now).
When does the 12 years start? From the time we leave, from the time the bank sells the house? From the time of a judgement which could effectively add a few years?
Thanks,
Steve
Personal and income details
Income self: Employed - Being relocated permanently to US
Income partner/spouse: Homemaker
2 Kids
Home loan
Lender:
Amount outstanding: 225K
Value of home: 145k
Interest rate: Low tracker
Amount in arrears - None
How important is retaining the family home to you?
Which of the following best describes your situation?
I don't care about keeping the family home.
Any other relevant information
What is your preferred realistic outcome?
Agree a monthly payment (loan amount) that is reasonable - Would include a partial write-off
I am being relocated to the US (I/Kids are US Citizens - Wife has 10 year VISA). We bought our house here in a rural area for nearly 300K, it went up past 400K in the boom and is now worth around 145-150K. We owe 225K aprox.
We were able to find a buyer and then approached the bank giving them our full financial situation as well as the fact we are leaving no matter what etc etc. Everyone we talked to has asked why we didn't just walk away since we are not coming back but we are attempting to do the right thing.
We are living month to month (some months more effectively than other months) although we have never missed a mortgage payment - might be a negative.
We jumped through all the hoops with the bank (including a proposal for partial payment of the shortfall via a new loan) and they came back with an offer that shortens our payback period and moves us from a tracker to a variable rate. The result is a payment there is no way we could make.
We are now strongly considering walking away and although we have written a final letter, I doubt the bank will budge and allow the sale.
Question : As I said, we are not coming back but you never know the future. What are the consequences of walking away? I have seen many threads on a 12 year statute of limitations but what does that really mean? Does it mean if we returned in 12 years we could buy a house with cash and have no issues (I say cash as our credit score would prob be 0 - we have no savings right now).
When does the 12 years start? From the time we leave, from the time the bank sells the house? From the time of a judgement which could effectively add a few years?
Thanks,
Steve
Personal and income details
Income self: Employed - Being relocated permanently to US
Income partner/spouse: Homemaker
2 Kids
Home loan
Lender:
Amount outstanding: 225K
Value of home: 145k
Interest rate: Low tracker
Amount in arrears - None
How important is retaining the family home to you?
Which of the following best describes your situation?
I don't care about keeping the family home.
Any other relevant information
What is your preferred realistic outcome?
Agree a monthly payment (loan amount) that is reasonable - Would include a partial write-off