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Barrister
Barrister, Lawyer
Category: Real Estate Law
Satisfied Customers: 33737
Experience:  15 years real estate, Realtor. Landlord 26 years
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We live in ; filed chapter 13 five years ago. Year into it

Customer Question

We live in Virginia; filed chapter 13 five years ago. Year into it we still could not keep up with mortgage and lawyer said walk away(bad advise). So house has been abandoned for over 4 years needs a lot of work to become livable again. Can we pay cash for a new house and let old house go into forclosure? Have not made a payment in over 4 years
Submitted: 8 months ago.
Category: Real Estate Law
Expert:  Barrister replied 8 months ago.

Hello and welcome! My name is ***** ***** I am a licensed attorney who will try my very best to help with your situation or get you to someone who can. There may be a slight delay in my responses as I research statutes or ordinances and type out an answer or reply, but rest assured, I am working on your question.

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Can we pay cash for a new house and let old house go into forclosure?

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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.

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Then they can lien your paid off house and force a sale of it to pay the deficiency.

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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.

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thanks

Barrister

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