Posted on: 16th Jun, 2010 09:37 am
If you file a Bankruptcy 7 does that relieve you free of any future recourse from a VA Loan ?
Moved out of both homes and started renting them. Now both are going to be vacant soon. Want to just let both go and file Bankruptcy 7. Once the rental income is gone for 6 months I will meet the Florida Mean Income in order to qualify. Afraid they will try to ganish my wages and or hold me responsible for both after they are foreclosed on. Tried for Modifications and was turned down.
Moved out of both homes and started renting them. Now both are going to be vacant soon. Want to just let both go and file Bankruptcy 7. Once the rental income is gone for 6 months I will meet the Florida Mean Income in order to qualify. Afraid they will try to ganish my wages and or hold me responsible for both after they are foreclosed on. Tried for Modifications and was turned down.
Welcome dunnivaj,
If you do not reaffirm the mortgages while you are in Chapter 7 bankruptcy, you won't be liable for the dues personally. You can surrender the property to your lender and let them foreclose it. If you do not reaffirm the mortgages, the lender won't be able to come after you for the deficient balance.
If you do not reaffirm the mortgages while you are in Chapter 7 bankruptcy, you won't be liable for the dues personally. You can surrender the property to your lender and let them foreclose it. If you do not reaffirm the mortgages, the lender won't be able to come after you for the deficient balance.
Also if you do default on a VA mortgage they will remember. To obtain a new VA loan in the future you will need to reimburse the VA for the amount of eligibility loss they incurred.
Nic
Nic