"Dale F." <dalef[at]augustmail.com> wrote in message
news:MoydnfNAv9bWfSDdRVn-gQ[at]august.net...
- quote -

I worked with a client a number of years back who was upside down in a VA
financed house. At that time, the VA had a program that allowed her to sell
the house for less than what she owed and the VA ate the difference. It has
been several years and I'm not sure the program is still available. And her
situation may have been different than yours, she was active duty and was
being shipped overseas for an extended period.

I would check with someone in your area knowledgeable about VA loans and
make sure you understand what your options are.

Gene E. Utterback, EA

In article <MoydnfNAv9bWfSDdRVn-gQ[at]august.net> , Dale F.
<dalef[at]augustmail.com> wrote:

- quote -

The VA is notorious for going to the ends of the earth and stopping
at nothing to get back the money that they loaned out. The only
people who are worse are loan sharks. Unless they leave the country,
they are going to end up paying off this loan. They should do now
what will minimize the amount they will owe long term. That means
either keeping the house and paying the loan payments, renting the
house to recoup some of the payments, or selling it for the best
price that they can. If they let the VA sell it, the VA has no
incentive to maximize the sale price, rather, they are more interested
in moving it quickly. That will really hurt your son and his family
in the long run.

If your son has no chance at getting a job near this home, they
should then consider an interim solution. The family stays in the
house, and your son lives in the back seat of his car or in a
rooming house until they take care of this house problem. Who
knows...the new job could evaporate just as quickly as the old
one did, so he shouldn't pay any expenses or sign any leases in
the new city until everything is taken care of in the old city.

-john-

--
================================================== ==================
John A. Weeks III 952-432-2708 john[at]johnweeks.com
Newave Communications http://www.johnweeks.com
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Dale F. <dalef[at]augustmail.com> wrote:
- quote -

They could file for bankruptcy if they can't sell the place for what
they owe on it.

--
Ron

My son and daughter-in-law are upside down on their house in McKinney. They
have it listed with a realtor, dropped the price / option to lease, no
takers. It's a VA loan and in a very nice part of McKinney (El Dorado).
They have tried to lease it throught the paper in McKinney also.

My son has a job in another state and they need to move later this month.
So far, I think they are caught up on the mortage, but that will deteriorate
soon when they move. The house is a 3BR, 2B, K, Den, FDR, 2 car garage.
Needs no work.

Questions:
1) Since it is a VA loan, will they work with them to take the house back?
2) Should they just stop making payments and hit the road?
3) Do a Voluntary Reposession ? Reprocussions ?? Bad Credit report??

What suggestions do you have?
Thanks
Dale