25 Miss. Code. R. 202-11.3 - 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:

Notes

25 Miss. Code. R. 202-11.3