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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.  

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