Military VA morgage loan through Wellsfargo in Hawaii.... Walking Away!!!

[Surviving101]

Hi everybody,

My husband is in the military and I am unemployed unable to find employment because of current economy. We bought an apt in Hawaii for 230k, which we now know was a big mistake. Due to a military move, reduction in his pay, and the fact that I am unemployed, we are no longer able to paid our morgage.

These past few months, we have struggled to pay our bills, food, and gas for him to go to work. At the end, we found ourselves with no money left for anything else. We tried to rent our place, but we got a couple of tenants that ended up not paying rent and no we are just waiting for them to leave the place to see if we can find another tenant. Again, due to the economy that seems not possible. Before these tenants, it took us more than a year to find these bad ones. (Its a good, affordable place, just far from the city). We have run out of savings trying to save our home and having to rent and pay bills in our new location is taking a told on us.

As of today, we are current in our morgage payments but will NOT be able to pay the morgage and management fees starting next month. We have no more savings to drain and nothing valuable to sell. Thanks to all my reading and reasearch on these posts, we decided that walking away might just be the best thing for us. Banks, specially Wellsfargo, seem like they are very hard to work with.

We just dont have the energy anymore, specially when the outcome will be the same with a DIL (if we even get one), Short Sale (if we are lucky enough to find a buyer), or foreclosure.... Ruined credit! We are as ready as we can be to face a bad credit for 7 years. We figure we are still somewhat young and can start fresh. The problem is this. *** We are walking away from a VA backed loan. Does anyone know if the VA or Wellsfargo will come after us after they pay Wellsfargo? We have no saving now, have a paid for truck, I have no employment, my husband works for military, and are paying on a second property. I wonder if they will take mony out of his pay or mine when I have a job or sue us all together.

Thank you for reading. Advice appreciated!!!

[Moe Bedard]

I am so sorry for the late reply. Welcome to the community!

VA will entertain a deed in lieu. Most likely you will have to at least try and sell the home for 2-3 months before they would allow this. Please check with a couple local Realtors who are experienced in short sales. Also it would be wise to speak with a couple attorneys.

Per the VA

Deed in Lieu of Foreclosure

• If you will be unable to cure the default, and a private sale does not appear realistic, VA will consider accepting a deed in lieu of foreclosure. If there are no liens on the property, and VA agrees to accept a deed, you will have to sign legal papers making VA the owner of the property. Normally, VA will have to pay your loan holder a claim for the difference between the value of the property and the amount you owe on the loan. If a deed is accepted, you may be released from all further liability, or you may be asked to agree to repay the Government for all or part of the claim we paid. VA representatives can discuss this with you in detail.

Foreclosure Alternatives Sale

[Surviving101]

Hi Moe,

Thank you so much for the information and for this web site! It is a blessing to know that we can find support and advice thanks to people like you. THANK YOU!

As for the info you gave me, I will be calling VA on the matter. Hopefuly they'll go for a deed in lieu. As soon as I hear something, I will post any updates.

Thank you again.
Surviving101