The VA terms are part of the entitlement programs we provide for our veterans. It’s not a subprime loan even though they do often have similar levels of foreclosures when times get tough.
A down payment of $12k isn’t even 5% in most price ranges around here, so I hope for your sake your borrower wasn’t relying on a financing program that has evaporated in the last week or two.
Unless you believe you can stay put in that house for at least another 5 years you probably should consider yourself to be in the “must sell” category. I say this not to be obnoxious, but because there is no indication that the current trend for price declines is going to do anything but pick up steam for at least the next couple years. Depending on how true to the long term trendline this market corrects to it may be years before prices recover to their current level.
You have nothing to gain by waiting unless you have both the will and the ability to sit tight for the duration.
