Will they throw you in jail or what? We just can't seem to keep up now that the military has moved us and our other home hasn't sold!
2007-10-13 04:45:18 · 5 answers · asked by Staci 1 in Business & Finance ➔ Renting & Real Estate
You lose your eligibility for another VA loan in the future... unless you pay the losses back to the VA.
2007-10-13 04:49:11 · answer #1 · answered by gabound75 5 · 1⤊ 0⤋
You'll probably have a deficiency judgment against you for any of the lender's losses. A few states don't allow that -- CA and AZ for example -- so that may not be an issue.
The VA will go after you for whatever they have to pay out on the foreclosure. If you don't pay up, they'll go through FMS and attach your Federal and State tax refunds. They can also go through the milpay channels and grab part of your military pay -- normally up to 10% of the gross -- to satisfy the outstanding debt.
As you can see, this is a NASTY situation! You'd be far better served by turning the property over to a property manager and renting it out. With a bit of luck you'll get enough in rent to cover your mortgage payment and maintenance costs. At the very least it will make it much easier to feed the alligator as he won't be nearly as hungry!
You CAN rent out a home purchased with a VA loan, by the way. I did so for many years, as well as with 3 FHA loans and several conventional loans. The only restriction on renting out a home is that you must intend to occupy the home as your personal residence when you first take out the loan. Circumstances can and do change with time, however, so lenders (or the VA or FHA) cannot and do not hold you to task for renting out the home later on.
I did 21+ years in the Air Force and bought several homes during my career, including one in the UK. Every time I PCS'd, I turned the property over to a property manager and rented them out. It was nip and tuck for a while financially but as rents rose it became much easier to afford the mortgage payments -- I had as many as 7 at one time! I've sold off my properties now (the one in the UK was a major hassle!) and it has made for a VERY sweet retirement now!
Go for it! Get a property manager involved and get a tenant in there ASAP! You'll be VERY glad you did in a few years when you see how much SERIOUS money you can make down the road!
2007-10-13 05:01:51 · answer #2 · answered by Bostonian In MO 7 · 3⤊ 0⤋
Renting it out is a good idea. Usually homes around military installations are in demand. If you list the house with base housing, you get another military family in the house. Saves time on background checks.
2007-10-13 06:30:32 · answer #3 · answered by bdancer222 7 · 3⤊ 0⤋
Your comanding officer will make sure that any money you owe will dededucted from your pay. Don't worry about jail. A mortgage foreclosure is not a crime... even in the military. I'd ask to see the base chaplin, in many cases he can intercede on your behalf and work out any problems with the base commander. It's not your fault you were moved. And it's not your fault the housing market is in the toilet.
2007-10-13 05:08:25 · answer #4 · answered by Anonymous · 0⤊ 2⤋
If you have equity in your home you may be able to refinance in order to buy more time so that you can sell your home. We can help you with that if you need assistance.
2007-10-16 23:31:03 · answer #5 · answered by Anonymous · 0⤊ 0⤋