What’s the impact of a VA loan foreclosure?

Forclosure home - shutterstock_74401561

Q: My ex-husband and I had a home loan through the VA that was fore­closed on in 2008. Is there a way I can find out the sta­tus of the loan? Like if any money is still owed or what hap­pened when it was sold? Since we got divorced I believe that all the infor­ma­tion regard­ing the loan went to him and I have received noth­ing. I need to know how this is affect­ing me and my credit or if there is any­thing I need to do with this sit­u­a­tion. The VA took over the home in Feb of 2008 and it was sold in May of 2008.

–Shan­non, Ohio


A:  I think the infor­ma­tion you seek is right at your fin­ger­tips.  First, it sounds like you already know the sta­tus of the loan:  you defaulted on it.  And since you are divorced and would not be eli­gi­ble for a VA loan, your sta­tus with the VA isn’t an issue for you (although the default could impact your ex-husband’s abil­ity to get another VA loan).

What you really need to find out is where you stand today from a credit per­spec­tive.  A fore­clo­sure will typ­i­cally stay on your credit report for 7 years, but over time and with oth­er­wise respon­si­ble credit behav­ior your score should have improved since the fore­clo­sure.  Have you done a good job with credit since the fore­clo­sure and divorce? Here’s a link to some gen­eral infor­ma­tion on what goes into your credit score.

To see where you stand today you can visit www​.annu​al​cred​itre​port​.com.  This is the site where you can get your government-mandated free credit report.  Check and see if and how the fore­clo­sure appears.  Also, ver­ify that every­thing else in the credit report is accu­rate and dis­pute any errors.  Finally, con­sider pay­ing a few bucks to obtain your credit score so you can see how you are doing.

This should give you a good start point in your quest to see what you’ve got to do to get your credit score in tip-top shape.  Good luck.


2 responses to “What’s the impact of a VA loan foreclosure?”

  1. i live in canada andi have a cer­tifi­cate of eli­gi­bil­ity to by a house in canada but now i am 62 year old is it stil good to buy a house now my name is guy trudel and was in the ser­vice in usa for 3 years back in 1972 to 1975.

  2. Thank you for shar­ing This knowl­edge­able post.Excellently writ­ten arti­cle, I found this one pretty fas­ci­nat­ing and it should go into my col­lec­tion. Very good work!

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