Mortgage Guaranteed by VA, then Short Sale...

[brodieaa]

Okay, here's my story...I obtained a VA loan through BOA, then re-financed through Wells-Fargo Home Mortgage, I later sold my home via short sale after missing three payments to get Wells-Fargo to agree to it. The re-sale price was about 1/3 of what I paid for the house initially (thanks to the housing bubble burst).

 

My questions are:

 

1. Is the VA loan I initially obtained wiped out when it was re-fied by Wells-Fargo (i.e. did Wells-Fargo "pay off" the VA loan)? Or...

2. Did the VA loan (guaranty) transfer to Wells-Fargo when I re-fied?

3. If the VA guaranty transferred, wouldn't it mean that the VA covered any delinquency that I owed after settlement and therefore, Wells-Fargo shouldn't be reporting negative on me?--Currently reports 120 days past due as last reporting.

 

Thanks in advance!

[jop3]

What kind of refinance did you do? You'll have to pull out the closing papers for that transaction and see if it was a VA loan or not.

[brodieaa]

@jop3,

 

That was back in 2009, I'm pretty sure the closing papers were trashed (probably last year). The re-fi was to an ARM. I don't recall whether it was re-fied as a VA loan or not. Would that have been the most likely course of action unless I stopped it from being re-fied that way? I do know that the re-fi covered the entire original mortgage.

[Brian B The Loan Professor]

Sorry you arent getting the answer you were looking for - this is out of my personal realm of experience - I would contact VA and see what they say

[coachtom2183]

I had similar situation on my credit report it has my first mortgage as a va loan and my refi as a conventional loan.