CassieNet News :: Already got a mortgage

Already got a mortgage :: RE: VA loan

Author: jessica
Subject: RE:
Posted: Mon Aug 01, 2005 4:29 am (GMT 0)
Topic Replies: 3

Hi Guest.
Welcome to MortgageFit forum.

You are not automatically released from the liability to repay the loan. If the closing has occurred after March 1, 1988, the lender or the VA must be informed about it. They should be requested to approve the person who will be assuming the loan and grant the previous borrower release from liability.

But if the loan was closed before March 1, 1988, the loan can be assumed by anyone without a prior approval from your lender or the VA. However it is better that you request a release of liability from the VA or the lender so that you can avoid owing a debt to the government if the loan assumer or any subsequent assumer defaults and fails to repay the loan.

Hope you will find this information useful.

Please feel free to post further queries.

Regards,
Jessica.

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