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.

JJ

Share |

USAA or its affiliates do not provide tax advice. Taxpayers should seek advice based upon their own particular circumstances from an independent tax advisor. The information is provided for informational purposes only and is not intended to substitute for obtaining professional financial advice. Please thoroughly research and seek professional representation before acting on any information you may have found in this article. This article is in no way attempts to provide advice that relates all personal circumstances.

Examples given are hypothetical illustrations and not an indication of the benefits or features of any USAA product. You should seek policies and advice based upon your own particular circumstances. Sample loans are for illustration purposes only and are not a rate quote, pre-approval, or commitment to lend.

Scott Halliwell and JJ Montanaro are CERTIFIED FINANCIAL PLANNER™ practitioners with USAA Financial Planning Services, one of the USAA family of companies. Certified Financial Planner Board of Standards, Inc. owns the certification marks CFP® and Certified Financial Planner™ in the United States, which it awards to individuals who successfully complete CFP Board's initial and ongoing certification requirements.

USAA Financial Planning Services® refers financial planning services and financial advice provided by USAA Financial Planning Services Insurance Agency, Inc. USAA Financial Planning Services Insurance Agency, Inc. (known as USAA Financial Insurance Company in California, Lic. #0E36312), a registered investment adviser and insurance agency and its wholly owned subsidiary, USAA Financial Advisors, Inc., a registered broker dealer. (known as USAA Financial Insurance Agency in California), a registered investment adviser and insurance agency and its wholly owned subsidiary, USAA Financial Advisors, Inc., a registered broker dealer.

USAA means United Services Automobile Association and its affiliates. Investments provided by USAA Investment Management Company and USAA Financial Advisors Inc., both registered broker dealers. Banking products provided by USAA Federal Savings Bank. Credit cards provided by USAA Savings Bank. Both Banks Member FDIC.