WonderingToo
Junior Member
What is the name of your state? House is for sale in Florida
I know this forum must be getting bombarded with q's like these lately, but every situation is different, and if anyone has time, I'd sure appreciate some sound feedback. Thanks in advance.
Purchased home in Florida in 2005, primary residence, used VA loan, no money down, fixed rate, payment we could afford (we bough a house half the price we got approved for). Figured we'd be in it for years.
End of 2007, company is laying of left and right, presented with option: get laid off, or get transfered. Chose the latter, put house up for sale in already bad, but not detrimental market. Within a couple of months, market crashes in particular part of Florida. We are forced to drop the price of the house below what we owe bank. City area listed in top 10 of worse markets in US, with 30% depreciation rate.
Call VA, talk to loan counselor several times and are told that if home is sold for 88% or more of appraised value, VA guaranteed the lending bank the difference, and will NOT consider it debt unless we want to obtain another VA home loan in future. Get this confirmed several times, by different VA loan officers. We are even told by one counselor: "why would you pay us the difference so you can get another VA loan, if you could use that money toward a down payment of regular loan?" We were also told that the VA would not put the deficit on our credit report.
-> Does this sound right? They (VA) are basically saying that we won't owe them anything UNLESS we want another VA loan? So what does that mean? That the debt is forgiven, until - if ever - we apply for another VA loan again?
Also talked to lender, loan representatives, also their managers, each with their own story, most of the time contradicting each other. We've filled out all the paperwork for a short sale when it comes to the bank, showing the necessity of such, and have included all that they ask for, like W2's, bank statements, and tax returns.
-> if house sells within 88 - 100 % of appraisal value, is the lender obligated to accept the short sale, because the VA guarentees the difference and the bank will not lose any money?
-> Can Lender put something on our credit report that will bring our scores down, DESPITE satisfaction of the loan by sale 'proceeds' and VA payment?
We have done away with our chothing and entertainment budget, cut down on phone/internet and cable services, have no cell phones, are holding off on obtaining the life insurance we need, stopped putting money into savings. We have no credit card debt, no student loans, no other liens on the house. The only debts we have are a 150 a month car payment, and some medical bills we're paying off with 100 a month installments. However, with the additional rent and utility bills, increase in taxes (losing homestead on the house) and a huge hike in insurance (homeowners won't cover vacant home, vacant home policy is triple as high), we will run out of money to pay for the house in March.
Besides renting the house out for 50% of our mortgage payment, which will still put us in a monthly deficit, does anyone have any ideas?
-> If house goes into foreclosure and lender sells house for less that what we owe, (or does property then become VA owned???), will they 'come after' us for the difference?
-> Does 401K count as assetts?
Thanks in advance.
I know this forum must be getting bombarded with q's like these lately, but every situation is different, and if anyone has time, I'd sure appreciate some sound feedback. Thanks in advance.
Purchased home in Florida in 2005, primary residence, used VA loan, no money down, fixed rate, payment we could afford (we bough a house half the price we got approved for). Figured we'd be in it for years.
End of 2007, company is laying of left and right, presented with option: get laid off, or get transfered. Chose the latter, put house up for sale in already bad, but not detrimental market. Within a couple of months, market crashes in particular part of Florida. We are forced to drop the price of the house below what we owe bank. City area listed in top 10 of worse markets in US, with 30% depreciation rate.
Call VA, talk to loan counselor several times and are told that if home is sold for 88% or more of appraised value, VA guaranteed the lending bank the difference, and will NOT consider it debt unless we want to obtain another VA home loan in future. Get this confirmed several times, by different VA loan officers. We are even told by one counselor: "why would you pay us the difference so you can get another VA loan, if you could use that money toward a down payment of regular loan?" We were also told that the VA would not put the deficit on our credit report.
-> Does this sound right? They (VA) are basically saying that we won't owe them anything UNLESS we want another VA loan? So what does that mean? That the debt is forgiven, until - if ever - we apply for another VA loan again?
Also talked to lender, loan representatives, also their managers, each with their own story, most of the time contradicting each other. We've filled out all the paperwork for a short sale when it comes to the bank, showing the necessity of such, and have included all that they ask for, like W2's, bank statements, and tax returns.
-> if house sells within 88 - 100 % of appraisal value, is the lender obligated to accept the short sale, because the VA guarentees the difference and the bank will not lose any money?
-> Can Lender put something on our credit report that will bring our scores down, DESPITE satisfaction of the loan by sale 'proceeds' and VA payment?
We have done away with our chothing and entertainment budget, cut down on phone/internet and cable services, have no cell phones, are holding off on obtaining the life insurance we need, stopped putting money into savings. We have no credit card debt, no student loans, no other liens on the house. The only debts we have are a 150 a month car payment, and some medical bills we're paying off with 100 a month installments. However, with the additional rent and utility bills, increase in taxes (losing homestead on the house) and a huge hike in insurance (homeowners won't cover vacant home, vacant home policy is triple as high), we will run out of money to pay for the house in March.
Besides renting the house out for 50% of our mortgage payment, which will still put us in a monthly deficit, does anyone have any ideas?
-> If house goes into foreclosure and lender sells house for less that what we owe, (or does property then become VA owned???), will they 'come after' us for the difference?
-> Does 401K count as assetts?
Thanks in advance.