Question Regarding Trashed Credit

[timb]

I'm trying to weigh my future options and decide a best course of action for my situation. Right now I've got a job and great credit. The problem is due to a divorce, and taking a 2nd mortgage, and the bubble collapse, there is little to no equity in my home.

 

A large chunk of my income goes to the mortgage and property tax. It does not leave me with a lot of $$ for beginning a new marriage and the long immigration process.

 

I'm going to try to sell my home and get into something more affordable. I would expect this to go to short sale, but from what I read, the larger banks have no financial incentive to accept short sales because it's more profitable to foreclose. In any case, I've also looked at the strategic default option, and I could consider this route. If I went that route, and my credit got trashed, could I expect this to effect the K1 or K3 visa process?

 

Please advise.

[dnoblett]

A few points.

 

Credit is not considered when the visa is interviewed only INCOME, they do not look at debts.

 

Also K-3 is essentially dead, The process for K-3 involves filing I-130 and the I-129F, USCIS has been approving BOTH petitions on same date and sending BOTH to NVC where NVC closes the I-129F and proceeds with the I-130 for a CR-1 Spousal visa. SEE: http://candleforlove.com/forums/index.php?showtopic=40925

 

The choices are K-1 or CR-1 Note CR-1 costs MUCH less that K-1 when factoring in AOS.

[Randy W]

But the affidavit of support is NOT the only place where it might show up - anyone doing a background check will have that information available.

 

I tend to agree, though, that it's doubtful that it would have any impact, BUT, remember that you must NOT ONLY satisfy the 125% of poverty line requirement, but also satisfy the VO that your wife will not become a public charge.

 

You might consider including a single page with your I-129F explaining your situation. Remember that anything "approved" by the USCIS cannot by law be used against you at Guangzhou.

[smokiessky]

Foreclosure will minus your credit by 200 points. A short sale will only hurt your credit by 50-100 points. Next month there are some new federal guide lines coming out makeing the short sale process a little easier.

[shenzhen]

Foreclosure will minus your credit by 200 points. A short sale will only hurt your credit by 50-100 points. Next month there are some new federal guide lines coming out makeing the short sale process a little easier.

I'm too lazy to look it up ... what is meant by "Short Sale" in this process?

[knloregon]

short sale is where the financial institution holding your paper agrees to take less than you owe them in exchange for a 'short sale' greatly reduced price than you paid, and they financed. They want out to get your poison, non performing loan off their books, but it only works if you and they agree. They take a huge loss.

 

If they are really screwed in the deal financially, they may do the forclosure route, so they end up with the home as an asset. But they then still have to sell it, or explain it to bank regulators for its still being on their books.

 

My personal opinion is that we are not through this process at all. And Now, in addition to the residential mess, (much in legal limbo) Commercial real estate is going to hit the fan, and it could be even worse.

[chengdu4me]

Tim, if you do a short sale, make damn sure you get a letter from the lender stating that you have no further financial obligation for this loan. Have your attorney look over the letter before you accept it and go through with the short sale. If you do not have a release from the lender, the lender can come back later and sue you for the loss and you will be on the hook for it. Banks/Mortgage Companies are doing this left and right now. Any borrower that did not request a release is getting sued.

[Stepbrow]

But the affidavit of support is NOT the only place where it might show up - anyone doing a background check will have that information available.

 

I tend to agree, though, that it's doubtful that it would have any impact, BUT, remember that you must NOT ONLY satisfy the 125% of poverty line requirement, but also satisfy the VO that your wife will not become a public charge.

 

You might consider including a single page with your I-129F explaining your situation. Remember that anything "approved" by the USCIS cannot by law be used against you at Guangzhou.

 

 

I am a little confused. I thought that by having income above 125% of the poverty line was the evidence needed to prove that the wife would not become a public charge.

 

Secondly, while it is technically true that when things are approved by the USCIS, the DOS cannot use them against you, in actuality DOS does often use things against the beneficiary and petitioner that are included with the petition and are known to USCIS (so called red flags). Randy has correctly mentioned in the past that a CO has the legal authority to deny petitions without legal recourse except to appeal to the Chief of IV Unit.

 

After a visa refusal, the petitioner then must wait until the appeals process until he can assert his legal rights, and bring into play the facts of pre-approval by USCIS.

[Randy W]

But the affidavit of support is NOT the only place where it might show up - anyone doing a background check will have that information available.

 

I tend to agree, though, that it's doubtful that it would have any impact, BUT, remember that you must NOT ONLY satisfy the 125% of poverty line requirement, but also satisfy the VO that your wife will not become a public charge.

 

You might consider including a single page with your I-129F explaining your situation. Remember that anything "approved" by the USCIS cannot by law be used against you at Guangzhou.

 

 

I am a little confused. I thought that by having income above 125% of the poverty line was the evidence needed to prove that the wife would not become a public charge.

 

Secondly, while it is technically true that when things are approved by the USCIS, the DOS cannot use them against you, in actuality DOS does often use things against the beneficiary and petitioner that are included with the petition and are known to USCIS (so called red flags). Randy has correctly mentioned in the past that a CO has the legal authority to deny petitions without legal recourse except to appeal to the Chief of IV Unit.

 

After a visa refusal, the petitioner then must wait until the appeals process until he can assert his legal rights, and bring into play the facts of pre-approval by USCIS.

 

Think of an income of under $50,000 as being a red flag - it satisfies ONE requirement, but the VO is OBLIGATED to look at the "TOTALITY OF CIRCUMSTANCES" in his determination.

 

(50,000 is my own figure that I just made up - don't try looking it up anywhere)

 

Yes, you are exactly right on the second point. You should be careful in front loading a petition that you are not loading it with potential red flags. That's why I recommend viewing it as "painting a picture" of a loving relationship.

[timb]

Yes, I'm all about protecting myself and my assets if it goes that way. A good real estate lawyer and CPA in case there are any tax implications.

 

 

Tim, if you do a short sale, make damn sure you get a letter from the lender stating that you have no further financial obligation for this loan. Have your attorney look over the letter before you accept it and go through with the short sale. If you do not have a release from the lender, the lender can come back later and sue you for the loss and you will be on the hook for it. Banks/Mortgage Companies are doing this left and right now. Any borrower that did not request a release is getting sued.