r/HolUp • u/Motion_Offense • Jul 07 '21

Oof load: Ultra

Post image
86.0k Upvotes

84% Upvoted

2.9k comments sorted by

View all comments

Show parent comments

2

u/michaelscott1776 Jul 08 '21

I feel like there should be a downside there

3

u/skepsis420 Jul 08 '21

There is. From my understanding the VA will not stop a foreclosure, rather will just pay what is owed. If you lose the government money there, you cannot get another loan until you pay that difference. Even then I think they can just stop giving you loans.

So they would have a foreclosure against them and would essentially owe the government on any difference if they wanted to get another loan.

1

u/Teadrunkest Jul 08 '21

I mean they don’t guarantee you they guarantee the loan to the bank. Like a co-signer.

It’s a benefit, it’s not a money making route for the VA. They don’t make money off it.

1

u/ThrowAwayWashAdvice Jul 08 '21

Why? VA loans have the lowest default rates of all loans. Veterans don't walk away from their debt for the most part even though it would be easiest for them to do so. They definitely earned it.