patti
United States of America#2Consumer Comment
Thu, March 01, 2012
It's the bank's job to get the most money they can out of this situation. They most likely would not auction the property. They would foreclose and then market it. The VA would pay the difference between the sale price and the balance of the mortgage, up to the limit of the guaranty. The bank is not scamming anyone...it's strictly business. I'm sorry this has happened to you, but the bank is entitled to recover as much of what they loaned you as possible. In fact, they would be subject to criticism by their regulators if they didn't.