diff --git a/src/dm/DispatchManagerActions.cc b/src/dm/DispatchManagerActions.cc
index 93d95a4ab1..37189b4a81 100644
--- a/src/dm/DispatchManagerActions.cc
+++ b/src/dm/DispatchManagerActions.cc
@@ -565,6 +565,7 @@ int DispatchManager::finalize(
     switch (state)
     {
         case VirtualMachine::SUSPENDED:
+        case VirtualMachine::FAILED:
             tm->trigger(TransferManager::EPILOG_DELETE,vid);
 
         case VirtualMachine::INIT:
@@ -573,7 +574,6 @@ int DispatchManager::finalize(
         case VirtualMachine::STOPPED:
             vm->set_exit_time(time(0));
 
-        case VirtualMachine::FAILED:
             vm->set_state(VirtualMachine::LCM_INIT);
             vm->set_state(VirtualMachine::DONE);
             vmpool->update(vm);
@@ -608,6 +608,7 @@ int DispatchManager::resubmit(int vid)
 
     Nebula&             nd  = Nebula::instance();
     LifeCycleManager *  lcm = nd.get_lcm();
+    TransferManager *   tm  = nd.get_tm();
 
     vm = vmpool->get(vid,true);
 
@@ -628,9 +629,10 @@ int DispatchManager::resubmit(int vid)
         case VirtualMachine::PENDING:
         break;
 
+        case VirtualMachine::FAILED: //Cleanup VM host files
+            tm->trigger(TransferManager::EPILOG_DELETE,vid);
         case VirtualMachine::HOLD: // Move the VM to PENDING in any of these
         case VirtualMachine::STOPPED:
-        case VirtualMachine::FAILED:
             vm->set_state(VirtualMachine::LCM_INIT);
             vm->set_state(VirtualMachine::PENDING);
             vmpool->update(vm);
diff --git a/src/lcm/LifeCycleActions.cc b/src/lcm/LifeCycleActions.cc
index 03683a2473..c415692bed 100644
--- a/src/lcm/LifeCycleActions.cc
+++ b/src/lcm/LifeCycleActions.cc
@@ -500,8 +500,7 @@ void  LifeCycleManager::delete_action(int vid)
     VirtualMachine::LcmState state = vm->get_lcm_state();
 
     if ((state == VirtualMachine::LCM_INIT) ||
-        (state == VirtualMachine::CLEANUP) ||
-        (state == VirtualMachine::FAILURE))
+        (state == VirtualMachine::CLEANUP))
     {
         vm->unlock();
         return;
@@ -535,8 +534,7 @@ void  LifeCycleManager::clean_action(int vid)
     VirtualMachine::LcmState state = vm->get_lcm_state();
 
     if ((state == VirtualMachine::LCM_INIT) ||
-        (state == VirtualMachine::CLEANUP) ||
-        (state == VirtualMachine::FAILURE))
+        (state == VirtualMachine::CLEANUP))
     {
         vm->unlock();
         return;
@@ -664,7 +662,11 @@ void  LifeCycleManager::clean_up_vm(VirtualMachine * vm)
             tm->trigger(TransferManager::EPILOG_DELETE,vid);
         break;
 
-        default: //FAILURE,LCM_INIT,CLEANUP
+        case VirtualMachine::FAILURE:
+            tm->trigger(TransferManager::EPILOG_DELETE,vid);
+        break;
+        
+        default: //LCM_INIT,CLEANUP
         break;
     }
 
diff --git a/src/lcm/LifeCycleStates.cc b/src/lcm/LifeCycleStates.cc
index ac01274093..5d9eb8dc61 100644
--- a/src/lcm/LifeCycleStates.cc
+++ b/src/lcm/LifeCycleStates.cc
@@ -778,7 +778,6 @@ void  LifeCycleManager::monitor_done_action(int vid)
 void  LifeCycleManager::failure_action(VirtualMachine * vm)
 {
     Nebula&             nd = Nebula::instance();
-    TransferManager *   tm = nd.get_tm();
     DispatchManager *   dm = nd.get_dm();
 
     time_t  the_time = time(0);
@@ -802,11 +801,9 @@ void  LifeCycleManager::failure_action(VirtualMachine * vm)
 
     hpool->del_capacity(vm->get_hid(),cpu,mem,disk);
 
-    //------------- Clean up remote files ----------------
+    //--- VM to FAILED. Remote host cleanup upon VM deletion ---
 
     dm->trigger(DispatchManager::FAILED,vm->get_oid());
-
-    tm->trigger(TransferManager::EPILOG_DELETE,vm->get_oid());
 }
 
 /* -------------------------------------------------------------------------- */