Quote:
Originally Posted by LivingAlmostLarge
I am unsure what to do. How do you know your wife will get a loan in her own name and how do you know that you will get a 3 bedroom house for $120k? Those are assumptions.
If you can guarantee it, then I guess if it's okay with your wife, you can do it. But realize when they pull her credit and pull yours for loan approval they might see the credit card debt you want to hide.
Also realize that walking away could be hurtful long term. I am not sure but could they potentially come after you after they short sell it? I mean if they foreclose but you have say $100k in a taxable account can they come after the assets?
Someone more versed in real estate will have to answer that. If you want to do this, I would talk to a real estate attorney and ask if they can come after you. And ask if you buy a home before your house goes into foreclosure, what will happen to that current home? And if they can put a lien against you for the balance of the foreclosure.
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LAL,
Yes those are assumptions. But I thought they are very much possible. 3% down for FHA loan. We can arrange 10K for the down payment, worst case we can borrow from our parents. I think getting 110K loan for my wife should not be a problem. only 4K of CC debt on her name. She has employment history of one year and she is making 55K which will go up once she gathers experience. Finding 3 bedroom / 1500 Sq Ft home for 120K is very much possible in the current market. I see houses even for 100K. lot of foreclosures, some houses are really in good condition when I checked on ZipRealty.com
As I mentioned earlier we were just talking about this. We are just checking what are all the things that we need to consider if we let the house foreclosed.
I understood that there are quite a few things need to be considered by reading others opinion on this.
- I am in to IT. will find any problem with my current job or if I had to look for a new job in the next 7 yrs, will I find problem due to this FC.
- How wud I get rid of 40K of cc debt. Will I be able to pay it off or move some to wife CC and still keep her credit score good to obtain home loan.
- Will I have to pay any tax, etc.,