Can the lender go after the buyer after a Foreclosure in VA?

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I have an interest only 5 year ARM, 100% financed loan. (100% financed in a single loan not 80/20). The ARM will reset next year. I am underwater by as much as 100K. The lender isn’t cooperating and I am trying my best, with the help of some organizations, to find a way to refinance my mortgage and turn it into a 30 year fixed, etc…

I will do my best to avoid a foreclosure. However, if I chose to walk away, I need to understand from now what to expect. I know that the lender can go after the buyer in Virginia (paycheck, assets, etc…)

My question is: Is this always the case? Can my mortgage be different? Can my mortgage be different because it is 100% financed or because it is interest only? How can I verify that?

Thanks for your help!!

1 Comment
  1. Reply
    got it
    April 29, 2011 at 9:13 pm

    if the bank takes your home and sells it for 200,000 and you owe 300,000, , yes they can and in all probability will come sue you for the difference. In the event they don’t, (i would be surprised) you will get a 1099 for the 100,000 and you will owe fed and state tax on that amount. I hope you get it worked out

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