Legal Question in Real Estate Law in Virginia

VA backed loan going into foreclosure

I moved my family to NC because I lossed my job. We are renting an apartment, I've had my house up for sale for almost two years. I was able to rent it for 7 mos. Because of a poor housing market we can't sell it. Now we want to buy another house in NC. This is a VA backed loan and we will have to let it go, after we buy another house. What can happen to us if we do this? Can the gov't hold us randsom because of a depressed area? What's the worst case scenario.


Asked on 7/08/07, 9:40 pm

1 Answer from Attorneys
Michael Hendrickson Law Office Michael E. Hendrickson

Re: VA backed loan going into foreclosure

Probably, if and when the home is autioned off and a deficiency occurs between what is realized at the auction and the amount still owed on your VA backed mortgage, that the note is sold off to some collector who may pursue you to collect this deficiency, using whatever legal means necessary to get the money, including a court action to have a judgment entered against you for the still outstanding amount.

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Answered on 7/08/07, 9:59 pm


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