Waiver of the Divestment Of Existing Property

Waiver of the Divestment Of Existing Property. A. Section 35-7-17 (4) also states that divestment “may be waived by the Board in cases where the Board can ascertain that the ownership of such property was originally intended as: 1. “temporary residence” or 2. “a condominium or mobile home” or 3. “that the veteran’s present residence is inadequate for his or her needs” and 4. “in cases where the requirement to sell on short notice will cause a financial hardship or loss to the veteran in the market place” and 5. “in cases where the sale of the present residence is not necessary to free the veteran of obligations to qualify financially for the new loan” B. Continued Board interpretation of section 35-7-17 (4) concerning waiver of the divestment of property is as follows: 1. Waiver of the sale of an existing home will be reviewed on a case by case basis. The veteran must submit a request for waiver of the sale of an existing home in writing. A waiver may be granted if the Board ascertains that: a. The veteran originally bought the property as a temporary residence and the sale will cause a financial hardship or loss to the veteran. The veteran must sign an affidavit stating that the property was originally purchased as a temporary residence. (Exhibit B) b. The veteran originally bought the property as a temporary residence and the sale is not necessary to free the veteran of obligations to qualify financially for the new loan. The veteran must sign an affidavit stating that the property was originally purchased as a temporary residence. (Exhibit B) c. The property is a condominium and the sale will cause a financial hardship or a financial loss to the veteran in the market place; and in cases where the sale of the present residence is not necessary to free the veteran of obligations to qualify financially for the new loan. d. The property is a mobile home and the sale will cause a financial hardship or a financial loss to the veteran in the market place; and in cases where the sale of the present home is not necessary to free the veteran of obligations to qualify financially for the new loan. e. The property is inadequate for the veteran’s needs and the sale will cause a financial hardship or a financial loss to the veteran in the market place; and in cases where the sale of the present home is not necessary to free the veteran of obligations to qualify financially for the new loan. C. Section 35-7-17 (4) also states, “when such waiver is granted, the veteran must agree in writing (a) not to reside in the former residence for a period of ten (10) years, (b) that the rent proceeds in excess of mortgage payments and cash expenses on the old home will be paid to the Board as a reduction to the loan balance on the new home, (c) and that, at the sale of the old home within a period of ten (10) years, a full disclosure of the sale shall be made to the Board and proceeds of the sale in excess of mortgage payoff and actual cost of the sale will be paid to the Board as a reduction to the balance of the existing loan with the Board.” 1. If a waiver is granted, the veteran borrower must execute the following forms, Exhibits A & B VHPB Waiver on Sale of Home and Affidavit: EXHIBIT A VETERANS’ HOME PURHCASE BOARD WAIVER OF THE SALE OF EXISTING HOME I/we agree not to reside in our home located at: ___________________________________________ For the period of ten (10) years, and that any rent proceeds in excess of mortgage payments and cash expenses on the home will be paid to the Veterans’ Home Purchase Board as a reduction to the principal balance on our Veterans’ Home Purchase Board loan, and that, if sold within a period of ten (10) years, a full disclosure of the sale shall be made to the Veterans’ Home Purchase Board and the proceeds of the sale in excess of the mortgage payoff and the actual cost of the sale will be paid to the Veterans’ Home Purchase Board as a reduction to the principal balance of the existing loan with the Veterans’ Home Purchase Board. IT IS EXPRESSLY UNDERSTOOD THAT THE PROCEEDS PAID TOWARD THE VETERANS’ HOME PURCHASE BOARD LOAN WILL BE APPLIED TO THE PRINCIPAL BALANCE OF SAID LOAN UNDER ACCEPTED ACCOUNTING PRINCIPLES AND WILL NOT REDUCE THE AMOUNT OR FREQUENCY OF THE PAYMENT IN ANY MANNER. I hereby certify under penalty of U.S. Criminal Code Section 1010, Title 10, U.S.C. that the above statement, submitted for the purpose of aiding the borrower named below to obtain a VA mortgage loan, is true. ______________________________________________ Veteran ______________________________________________ Co-borrower ___________________________ Date WARNING: SECTION 1010 OF TITLE 18 U.S.C., PROVIDES: “WHOEVER, FOR THE PURPOSE OF INFLUENCES SUCH ADMINISTRATION…, MAKES, PASSES, UTTERS, OR PUBLISHES ANY STATEMENT, KNOWINNG THE SAME TO BE FALSE…, SHALL BE FINED BUT NOT MORE THAN $5000. OR IMPRISIONED NOT MORE THAN 2 YEARS, OR BOTH.” EXHIBIT B AFFIDAVIT This is to certify that the property located at _________________________________________ __________________________________________________________ was originally purchased with the intent of being utilized as a temporary or part-time residence for my/our recreational purposes. I hereby certify under penalty of U.S. Criminal Code Section 1010, Title 10, U.S.C. that the above statement, submitted for the purpose of aiding the borrower named below to obtain a VA mortgage loan, is true. ___________________________________ Veteran ___________________________________ Co-Borrower ___________________________________ Date ___________________________________ Witness WARNING: SECTION 1010 OF TITLE 18 U.S.C., PROVIDES: “WHOEVER, FOR THE PURPOSE OF…, INFLUENCES SUCH ADMINISTRATION…, MAKES, PASSES, UTTERS, OR PUBLISHES ANY STATEMENT, KNOWING THE SAME TO BE FALSE…, SHALL BE FINED BUT NOT MORE THAN $5000 OR IMPRISIONED NOT MORE THAN 2 YEARS, OR BOTH.”