Comments on: Arizona foreclosure on a VA Loan?

By: Real Estate Guy

Real Estate Guy — Sat, 06 Dec 2008 17:02:34 +0000

Read this article. Very helpful. You can’t just walk away.

By: Ian C

Ian C — Fri, 05 Dec 2008 00:18:10 +0000

It depends, different laws in different states. But the bank essentially buy the house back at the sherriffs sale / auction.
They will eventually sell the home again to recoup their losses and typically (state by state laws )you will still owe the difference from what they sell for and what your mortgage balance was plus fees & penalties. Yes you should consult an attorney to help you through the process!

By: DebtFreeGuy

DebtFreeGuy — Thu, 04 Dec 2008 20:38:28 +0000

The bank will try to get as much as they can for it. It may not be what you paid for it. The good news is that if it is your primary residence, you wont be hit with a taxable event from the IRS. That loss in most cases would be considered income. This article on Foreclosures may give your more of what you are looking for;