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Ray, Lawyer
Category: Real Estate Law
Satisfied Customers: 41643
Experience:  Texas Attorney for 30 years dealing in real estate
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As a disabled veteran I am considering having an approved

Customer Question

As a disabled veteran I am considering having an approved sah house built with a VA mortgage. If I die during or after construction, will the lender seek to recover the loan from my estate ?
JA: Because real estate law varies from place to place, can you tell me what state this is in?
Customer: Florida
JA: Has any paperwork been filed?
Customer: Only mortgage pre approval
JA: Anything else you want the lawyer to know before I connect you?
Customer: no
Submitted: 10 months ago.
Category: Real Estate Law
Expert:  Ray replied 10 months ago.

Hi and welcome to JA. Ray here to help you today.Please bear with me a few moments while I review your question, conduct and prepare your response.

Expert:  Ray replied 10 months ago.

Yes the VA mortgage would have a lien against the real estate.When you decease here the VA can foreclose if the payments aren't made by your heirs.You may want to consider mortgage insurance so the loan is paid off for your heir.In that situation it passes free and clear under your will or the laws of intestacy to your heirs at law.

But any loan be it VA or conventional has a lien that goes on the property.In Florida foreclosures are judicial through the courts.Here VA would seek to take it back unless the loan is paid off by the estate.The loan is assumable here upon your death by the heirs, but they have to make payments once it is assumed here.It would also be possible for your executor/administrator to sell the property to pay off the loan and the balance goes to the heirs here.

Consider mortgage insurance if you want the loan to be paid off at your demise.Your lender will have this available and it can be added to the monthly payment.

I appreciate the chance to help you today.Thanks again, good luck with the house.

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