www.lasvegasmtg.com Report: Veterans are waging another war on the "Home Front" with slumping home prices in Las Vegas and across this country when orders for reassignment comes. Veterans are concerned they have little options when they are being reassigned due to base closures or transfers. Their options are two house holds and splitting the family up, or renting out the property at $400 to $500 less then the mortgage payments, or the ultimate decision to let the home go to foreclosure, or Deed in Lieu of Foreclosure or a short sale.
The last resort, Foreclosure has a far more reaching impact then losing the Veterans "Certificate of Eligibility" due to the government loss that has to be paid to the lender when the house is foreclosed on. The loss has to be repaid back to the Veteran Administration before the Certificate of Eligibility" can be restored. A daunting task on military pay. VA requires a minimum of two years after a foreclosure before a new purchase but Fannie MAE guidelines are now two years for Short Sale, Pre-foreclosure, and five years after foreclosure unless proof of extenuating circumstances then it is three years.
If there is a short sale or foreclosure this will impact the veterans credit negatively and a credit check is required to determine security clearance for career military personal. This would eliminate any promotion and could decrease the Veterans rank and pay.
With an all voluntary military and the sacrifices that we ask of them, how can we allow this to happen and not provide a solution for them?
Well there is some relief even if it is a small one there was legislation in the stimulus package for $555 million to help the Veterans that are facing these tough choices. First it is estimated by the Army Corp of Engineering that only about 17,000 Veterans would be eligible for help. This program was designed to limit the amount of claims and funds to help the Veteran.
To be eligible Veteranshad to purchase the home prior to July 1, 2006. The funds would be used to pay up to 95% of the loss if the Veteran is forced to sell. The government could also acquire the title at 90% of loan amount or payoff the loan balance. The problem is that the remainder or difference of the 5% or the 10% loss would have to be restored before their Eligibility by the Veteran can be available again to them.
I ask you, do you feel that it is right for the Veterans to fight another battle on the "Home Front" while keeping our country safe? Please let me know.