The Irwin's made an offer to purchase the Grey's property. As part of the offer, the Irwin's agreed to take title "subject to" an existing VA loan which the Greys obtained when they purchased the property in the approximate amount of $39,000. If the Greys sell to the Irwins under these conditions, which of the following is true concerning liability for a loss suffered by the government after a foreclosure on the VA loan: (a) The Irwins will be primarily liable. (b) The Greys and Irwins will be equally liable. (c) The Greys will be primarily liable. (d) Neither couple is liable because the Irwins took title "subject to" the existing loan.

Question

Shaylee Woodward

Business

4 October, 15:45

The Irwin's made an offer to purchase the Grey's property. As part of the offer, the Irwin's agreed to take title "subject to" an existing VA loan which the Greys obtained when they purchased the property in the approximate amount of $39,000. If the Greys sell to the Irwins under these conditions, which of the following is true concerning liability for a loss suffered by the government after a foreclosure on the VA loan: (a) The Irwins will be primarily liable. (b) The Greys and Irwins will be equally liable. (c) The Greys will be primarily liable. (d) Neither couple is liable because the Irwins took title "subject to" the existing loan.

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Answers (1)

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Ruth Kelly · Answer 1

"C"

Explanation:

A prior approval is necessary for transfer of all liabilities in the situation of transfer of VA loan. Where the approval was not obtained and loan transferred under the condition of "subject to" the mortgage, the purchaser will not be responsible for the liabilities including the funding fees, except the retroactive approval of the approval is arranged, then the purchaser can take over the loan's liabilities.