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VA loan on house, now getting medically retired

So I have a house I bought in December of 2006 in Columbus, GA. Since then I have PCS due to the military. I was injured in Afghanistan and sent to Missouri to heal. Due to my injuries I am getting medically retired from the military. I have received my ratings from the VA and they are over 70%. Here is the question... I can not sell my house in GA because I owe $90,000+, and it will only sell for maybe $70,000. I have gotten a job here in MO when I get out. If I short sale on my house in GA will I lose my VA Loans eligibility? How bad of a hit will my credit take? Any other options that will not cause me to have to find $30,000 to pay?
I basically need to get rid of my house in GA so in about 3-5 years I can buy one here in MO.
Any advice will help, Thanks!
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March 30 - US
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Answers (3)

I strongly recommend that you avoid the short sale. This can cause extreme damage to your credit and will prevent you from obtaining a mortgage for a couple years. Have you considered renting out your home? This may be a great option that you can consider for your situation that will allow you to hopefully avoid the short sale. Either way, the best thing for you to do is to speak with a knowledgeable lender to see if you can get started on financing a new home. If you need additional assistance, feel free to reach out. Good luck!
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April 01
Don't short sell your home if you can help it. Assuming you have a VA loan now, once the VA pays a claim filed by the lender, your VA Eligibility will be forfeited until you pay it off then get it restored. Many people in your situation either rent out their homes or do a lease option to purchase. If you need some guidance, let me know. I am a Vet with 25 years experience.


Best of Luck!
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March 31
If you short sale or foreclose on a house with your VA loan, you will lose your VA eligibility. If you can't sell the house, try renting it out and using your VA loan for the new house. You will have to qualify with both payments if you don't have a two year rental history, but it will help for now, at least until you can sell the other house without a huge loss.

 
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March 31
 
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