Legal Hotline Spotlight*Please note: Any questions regarding Legal Hotline Spotlights should be submitted via the Virginia REALTORS® Legal Hotline. Our attorneys are unable to respond to questions through our comments section.

Q: My clients have a VA loan and are looking to sell. If someone assumes their loan, would they be responsible if the buyer then is foreclosed on?

A: No. If the purchaser has good credit and assumes the liability to the lender and the VA, your client will be released from all liability associated with the loan. Your client should check with the company to whom they make payments to ensure that this liability release is complete. However, if the buyer is not a veteran (or is a veteran but does not substitute their own entitlement), a foreclosure on the loan might result in your client losing the entitlement they used to obtain the loan in the first place.  

Have a question about this article? Submit it to the Legal Hotline!

The Legal Hotline is a member benefit that has been supporting members for over 25 years. Our team of lawyers answers your important questions about real estate transactions quickly and accurately (usually within three business hours!).

Here are some tips to help make the Legal Hotline work for you!