What happens if I need to let two houses default this year?
Long story short, we have one house for sale 3 years w/a va mortgage in default hoping for a short sale, worse case scenario deed in lieu. Because we were making two house payments, we borrowed $ 30k to keep above water for two years until the above default could not be kept at bay. Now we are in repayment of these loans, plus the increase in FL property taxes and insurance, are looking at letting the primary residence (w/conventional loan plus a second mortgage) go at the same time rather than wait a few more years for another possible default, so we can “heal” over the next 24 months and rent. Our credit score is currently 700 with the VA loan in arrears 10 months. We have paid of 4 other mortgages in the past. What happens to credit score, mortgage potential after 2 years, tax repercussion? We may end up filing bankruptcy after all is said if we can’t get out of this house-heavy debt. Advice?