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Would a strategic foreclosure make sense on a VA loan ever?

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iggy73

Junior Member
What is the name of your state (only U.S. law)? Florida

Here's the situation: I had to relocate from Tampa, Florida to Raleigh, NC for a new job. We have a house in Tampa that cannot seem to rent even though it is listed below Section 8 maximums (brand new house in a great area too!!!). Anyways - we currently owe 235K on the mortgage (a VA loan) and sadly just got our trim notice from the County tax office that our home is appraised at 140K.

I would submit that this is definitely a toxic asset right now. So - is a strategic foreclosure (walk away from the house) an option on this VA loan? We've been making on time mortgage payments for over 3 years in excess of $75,000 and would love to stop the bleeding and accept a bad credit rating if that is the sum total of our exposure.

Any thoughts?What is the name of your state (only U.S. law)?
 



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