Hi Everyone. We have a house in California that is $240K underwater and we have it up for Short-sale. My first lender is ING, which is a non recourse loan and my second is Navy Federal Credit Union, a recourse. I owe NFCU $80K. I have talked to a real estate lawyer about the ins and outs of SS, DIL, and foreclosure. We are fortunate to have a house in Virginia, that we purchased while in the Navy. It has been rented out for the last 16 years. We owe $40K on that house. Here's the rub. It is also financed by NFCU. I am thinking that they are never going to settled on a short-sale or Deed in Lieu. We will probably go through foreclosure. When that happens, NFCU will come after me because they see the Virginia home. In 3 weeks we are moving back into the Virginia home. I talked to a Virginia BK lawyer's secretary (no VA lawyer seems to want to talk to a California dude) she said we would have to live in VA 3 years in order to file BK. My questions are upon foreclosure 1. How do you foresee NFCU proceeding, with things staying the way they are now? 2. What do you recommend us doing? I also realize the Tax Forgiveness Act of 2007 is due to expire 12/31/12. All advice will be appreciated. We served 30 years in the Navy and Navy Federal has always been great, but unfortunately we have to take the steps we are taking to survive. Thanks.
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