The discharge was 2 years ago.
We never reaffirmed the mortgage but continued to make payments.
We're not currently behind.
BUT...we're at least $20K upside down just from the value dropping since we bought the house three years ago. My husband has been laid off AGAIN. And we're moving towards a divorce which means we need to get rid of this house. And there are multiple identical units in our development selling for $60K less than we owe, so I'm not even sure we can get the 80% the realtor said the VA usually required.
From what I can tell by reading, it sounds like the V.A. will NOT collect a deficit after a short-sale or foreclosure. Is that correct?!? Especially since we're officially discharged of this debt from our BK two years ago??
It looks like a foreclosure or shortsale wouldn't show up on the credit report, but would add a few years before either of us could get a mortgage again. Right?
Am I missing anything? Am I crazy for thinking that the best option is to consciously stop paying the mortgage for a few months, save enough to move and pay for the divorce, etc, and then turn over the keys for a deed in lieu of foreclosure?
Logically, this is what I keep seeing. What are the Pros of scraping the payments together long enough to short-sell it?
We never reaffirmed the mortgage but continued to make payments.
We're not currently behind.
BUT...we're at least $20K upside down just from the value dropping since we bought the house three years ago. My husband has been laid off AGAIN. And we're moving towards a divorce which means we need to get rid of this house. And there are multiple identical units in our development selling for $60K less than we owe, so I'm not even sure we can get the 80% the realtor said the VA usually required.
From what I can tell by reading, it sounds like the V.A. will NOT collect a deficit after a short-sale or foreclosure. Is that correct?!? Especially since we're officially discharged of this debt from our BK two years ago??
It looks like a foreclosure or shortsale wouldn't show up on the credit report, but would add a few years before either of us could get a mortgage again. Right?
Am I missing anything? Am I crazy for thinking that the best option is to consciously stop paying the mortgage for a few months, save enough to move and pay for the divorce, etc, and then turn over the keys for a deed in lieu of foreclosure?
Logically, this is what I keep seeing. What are the Pros of scraping the payments together long enough to short-sell it?