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VA loan in a non-recourse state

Discussion in 'Deed in Lieu of Foreclosure - Do You Need Help to ' started by txsailor, Apr 23, 2012.

  1. txsailor

    txsailor LoanSafe Member

    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.
  2. Cat Damiano

    Cat Damiano Mortgage Wars

    You may want to check your states anti deficiency statutes or consult with a real estate foreclosure attorney in your state. In Arizona, which is also has anti deficiency statutes, the only exception to Arizona's anti-deficiency statutes are VA loans. As decided by recent litigation, VA is allowed to obtain a deficiency judgment despite current state laws that prohibit such actions.

    National Association of Consumer Advocates | Consumer Protection Advocates and Attorneys - Help for Consumers

    A consultation will be able to clarify this for you and help you with your next move. Many members do not want to go the short sale route due to the fact that you would have to prove hardship and disclose financials.


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