Question: I just purchased my first home using a VA Loan and will receive the First Home Buyers tax credit some time in the next 12 to 16 weeks. I would like to make some repairs and improvements to the home now. How long must I have my loan in order to obtain a HELOC?
Answer: -You can take out a HELOC anytime as long as you qualify. Anymore it’s becoming extremely difficult to get a HELOC on your home because of what’s happened to the real estate market. Not only do you need stellar credit and financials to back it up, your home must have a good amount of equity in it. The days of taking out a HELOC up to 100% LTV are long gone.
I have a house that I can not afford to pay for anymore. I have 3 kids and a wife and we don’t have the means to make the payment. I have the house for sale but the market in the town is not selling anything. I have about 15000 in equity, in the house and the payoff is 47000. I don’t care to make anything off the house, just want to get rid of it and try not to ruin my credit. My question refers more to the va loan part. I know it is a garanteed loan since it is a va. I am wondering what can happen after foreclosure. Will they come after me if they don’t get payoff. Garnish my wages or take what few possesions that I have. I have a vehicle that is paid for and one that is not. I was just wondering since it is a va loan, what i would expect from the bank and from the va.
thanks
Your house is typically all you pledge as collateral for the loan, so they can’t come after you for all your assets. All you have to worry about is a deficiency judgment which could be filed against you for the difference. But this happens to only a small percentage of homeowners. If all you want is to get out of the house, you can try to just give them the house back. Deed-in-lieu foreclosure. I say this assuming you don’t have any other junior lien holders. You may want to look into it. However, if you go this route, you’ll have to find another place to lease/rent. You might want to try to negotiate a smaller payment/interest rate with the bank. Lenders are being flooded with Loan modifications right now, you might as well see if it can work for you.
I have a House in Nebraska on a VA loan and a house in Wyoming on a FHA loan. Both houses with wells fargo. I had to move to wyoming for work and could not sell my home in Nebraska. I did a contract for deed on the house and the guy finally up and left after doing damage to the residence. I can not afford the house in nebraska anymore and I was wondering if I forclose on the house, if anything can happen to my house in wyoming, since the lender is the same or because it is a VA loan. I am fine with my Wyoming house but with 3 kids my wife and me, I can’t starve my family anymore.
thanks
Wow, this is a difficult situation. Because FHA and VA are separate entities where Va Guarantees the loan to the lender and FHA insures a portion of the loan to the lender you shouldn’t have any issues with the home you are keeping. In that your current home cannot be foreclosed upon as a result of the default on the VA loan.
You may have a balance due with the VA lender (after the foreclosure goes to sale) and it could become a lien against your property that would need to be paid should you sell or refinance your home.
Of course, foreclosure affects your credit and in that way you would be limited in the future from purchasing or refinancing your home, as well.
You best bet would be to contact your VA lender and see if you can do a deed in lieu foreclosure whereby you deed the ownership of the property to the lender to avoid the foreclosure process. It may not avoid a judgement for the loss of the offset but it would speed things up for you and the lender.
All the best to you and your family in the difficult time