I'm new to the forum and I'm having a hard time making a decision. I have a house in a non-recourse state that is a VA loan. It was originally bought as my primary residence, but I now live in another state. I can no longer rent it for even close to the mortgage payment, and I'm watching my savings slowly dwindle away.
Currently the house is listed for sale, at the demand of the loan servicer. Being a VA loan, I don't submit my financial information until there is an offer on the house. Recently the loan servicer began talking about a Deed in Lieu of Foreclosure, and they are asking for my financial information for that. I have not made a payment on the house since February, and it is currently vacant. Would it be better to let it go into foreclosure and not disclose my financial information? My belief is that after the bank sees my financial information they will say that I don't "qualify" for a short sale or a deed in lieu of foreclosure, and I'm not really crazy about having my financial information known. Any advice would be greatly appreciated.