I bought a new home in 2008 with VA financing, or so I thought. I recently tried to refi and discovered that the original lender never submitted paperwork to the VA, and also discovered that I now dont have a VA loan guaranty because of a problem with a previous home. Lender shouldnt have closed on this loan and I wouldnt have either as I didnt want a conventional loan. Is this mortgage fraud and can I nullify the entire mortgage and recover my funds?
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mortgage fraud?
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**A: why would it be mortgage fraud if you signed all mortgage documents?
**A: so you had no clue about this from 2008?
I have seen loans originated as Govt loans that, for whatever reason, are not insured by FHA or VA. I do not think, based on what you submitted, that it is fraud. More like incompetance. I think that the lender should be concerned in that there is no mortgage insurance on the loan! Fom your perspective, you should receive the terms that were agreed to. You can certainly refinance out of the loan, but what do you mean by "nullify the entire mortgage and recover my funds"? I don't think that is going to happen. Perhaps you can approach them about a refi and see what terms they will give you based on the fact that they now know the original loan is not insured.