I’m using the VA home loan and could be facing foreclosure soon. What happens to my disability benefits?
Basically, I bought a house with my VA loan (veteran affairs) while I was on active duty about 5 years ago. Upon getting out I had some injurys. The VA rated me at 60 % pay for compensation and benefits. Because I am currently unemployed I could be looking at foreclosure on the house. I am going through the steps to try to modify the loan. What I want to know is IF I do foreclose on this house for any reason, will I lose the disability pay the VA is paying me?
Foreclosure Angel: Weirder Buys Foreclosed House at Auction and Gave it back to Owner!
December 23rd, 2009 at 9:26 am
I don’t reckon the two are related. the house is one thing and your disability is another. I have been on disability and am a renter. I am considering giving ownership a go.Call the Legion if you are a member or visit Social Security for some help.
December 23rd, 2009 at 9:42 am
Most VA loans allow the lender and the VA to come after you for any loss suffered in the foreclosure. It is unusual for the VA to do this, but they have the legal right. If they got a judgement against you, it could be used to “attach” other benefits but i reckon that disability benefits are excluded..
December 23rd, 2009 at 10:40 am
Disability pay is non taxable and cannot be garnished for any reason.
December 23rd, 2009 at 10:45 am
NO!! The two have nothing to do with each other- I am 100% positive since I do VA loans every day…