View Single Post
  #17 (permalink)  
Old 10-30-2012, 10:12 PM
what_if what_if is offline
Member
Priority Date
:
Oct-04
Category
:
EB3
I140 Mailed Date
:
Chargeability
:
India
Processing Stage
:
Labor Certification
I485 Mailed Date
:
Compare
Join Date: Jul 2007
Posts: 29
what_if is just really nice what_if is just really nice what_if is just really nice what_if is just really nice
Default US residential mortgage is subject to state laws

Quote:
Originally Posted by go_guy123 View Post
If your home in India is paid for, give it on rent. If you have zero equity/negative equity in the house in US. It makes no financial sense to do this.
US residential mortgage is a non-recourse loan as per law i.e. it is a out of money call option. Foreclosure is a better option. Even millionares have used this clause to get rid of messy liabilities.
Note:foreclosure is not bankruptcy
This information is NOT correct. The nature of US residential mortgage in terms of recourse vs. non-recourse is driven by state laws. For example, in Maryland, it is a recourse loan and the bank can come after other assets of yours through a deficiency judgement against you. Please look at the state where your house is to figure out the mortgage's nature.

You also make foreclosure sound like it's not as bad as bankruptcy. Foreclosure is not technically bankruptcy but what it does to your credit score is pretty bad. In fact, if you don't pay your mortgage for even 2 monthly cycles, your credit score takes a big hit. If you don't pay the 3rd mortgage installment, your score could go down by 200 (or more) points after which it is very difficult to restore your credit score. If you have a job in USA and intend to be employable in any decent industry, you won't want such items to show on your credit score.
Bookmark and Share Compare Reply With Quote