Real Estate Law
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Can we pay cash for a new house and let old house go into forclosure?
The problem with that plan is that VA is considered a "recourse state" where if they end up foreclosing and selling the property at auction, they can then sue you for a deficiency judgment based on the difference between what the loan is and what it sold for.
Then they can lien your paid off house and force a sale of it to pay the deficiency.
So financially, it would probably work out better to make the other house liveable, move back in and live for free until they foreclosed on it all the while saving up your money to move elsewhere.