VA foreclosure homes are homes that were once financed to a veteran of the U.S. Military or qualified individual through a special program referred to as VA Home Loan Program. Many states require this sort of proceeding in some or all cases of foreclosure to protect any equity the debtor may have in the property, in case the value of the debt being foreclosed on is substantially less than the market value of the real property; this also discourages a strategic foreclosure by a lender who wants to obtain the property.
Ultimately, the court will enter a judgment of foreclosure against you unless you have some defense or counterclaim that justifies or excuses your delinquent payments, or you’re able to show that the lender or servicer didn’t properly follow state or federal law in the foreclosure process.
Many properties at sheriff sale do not even sell for enough to pay off the first mortgage in full, and liens of unsecured debt may be in line to be paid after back property taxes, a first mortgage, second mortgage, and home equity line of credit, most of which will not be paid off completely or at all.
Graceful exitâ€”A phrase meaning that a homeowner in foreclosure negotiates a dignified, responsible, and planned departure from ownership of the home through agreement with the lender about timing of the move-out, property condition, financial obligations, etc.
Any liens resulting from other loans against the property being foreclosed ( second mortgages , HELOCs ) are “wiped out” by foreclosure, but the borrower is still obligated to pay off those loans if they are not paid out of the foreclosure auction’s proceeds.