My husband has a TS+ clearance.

We transferred and are trying to work through the process of selling our home.

His unit is involved, and we're very nervous.  There's discussion that he may loose his security clearance and have to change his MOS.

Is anyone else who is facing foreclosure, directly because of a transfer during the past 2 years, in a same position. 

I've been keeping records of all communication with the lender and other people that I've been consulting with (homeowner foreclosure groups and legal).  I'm also printing out recent articles that specify the negative news regarding our lender and their statistics in completing loan modifications, short sales, and deed in lieu of foreclosures (CNN/MSNBC and other credible resources).  My print out has the dates (within 30 days) which coincides with my current efforts with this lender.

We're hoping that all of this will help in his attempts to keep his clearance.

He's career military, and we're just very frustrated that he may not be able to keep it, because we can't get the lender to work with us for a positive resolution.

Please post your stories, if you're currently or have been through this avenue already.

And, if you did and your spouse was able to retain theirs, what factors do you feel came into play?  What information regarding the home at your former duty station, did you provide, if they requested?

 

We want to support anon on this issue and strongly encourage your input. We can push the stories to Congressional staffers in mass. There is no doubt that this is affecting a large number of Military members and I don't think DOD has a consistent policy on this. While different commanders may react differently, my thinking it is smarter and a better strategy to address it up front rather than have them find out via back door or on a periodic review.

You may want to use screen names only, but please tell your story!

Joe

hello...

i've also been using anon on this board but am not the initial poster of this thread.

my husband also has a clearance and this is the only reason we did not do a short sale/foreclosure when we pcs'd a couple months ago. instead, we are renting our home out at 50% our mortgage. we will only be able to do this a few months before we will run out of "reserve" to make up the difference. at that point, we may have no choice but to do what seems the only option for many... foreclose and see where the chips may fall.

as far as such things effecting clearances, my personal idea on this is that the reason they don't want you to have a clearance and money woes is that it somehow puts you in a "situation" where you are not as stable with money or emotionally. i scoff at this at this point as my thought is that clearly, anyone with a clearance that is going through HAP and the waiting and the wondering is far more stressed out and unstable than anyone who would be relieved of all debt through foreclosure, etc. our debt is immense right now and we are throwing thousands at a house we are not even living in every month. and all of this so my husband can keep a clearance. how is that stable??

no one knows exactly how this housing issue will effect clearances, as we've heard rumors it would and rumors it wouldn't. so, we sit and wait in fear of doing anything else.

anyway, that is just my soapbox and i think its ridiculous if they pull clearances because a service member got stuck in this unfortunate situation.... especially if this is the ONLY mark on their credit. someone at the dod has to understand that the immense pressure (some of which is brought on by the dod taking 7+ months to even have guidance on HAP) is NOT good for those with security clearances. in such a situation, we're backed into a corner and don't have many choices other than to go into severe debt or ruin our excellent credit.

all my best....

 

This is the original 'anon'.

Thank you for your posts..  to the other 'anon'.  Yes, we're in the same situation.
We transferred a long while ago and also leased our property out at about a 50% loss.

We had the same thought that we'd use reserves and live conservatively at our new duty station.  Unfortunately, our tenants constantly called about repairs that were very much 'gray area'.  Our property manager received estimates but I am sure that they were inflated.  And, we're not there to discern the true need and too far away to drive out to do the repairs ourselves.  Those excess expenses (that drained our reserves very quickly) were what sent us over the edge where we just couldn't recover.

We are now putting the house on the market as a short sale. We just went in default, as we were told to stop payments.  We notified his command right before this occured.

The VA counselor was very knowledgable regarding the short sale/deed in lieu process, but I now have to call them back today.  The lender called me yesterday to say they were mailing my short sale 'letter'.  They added a dig that 'the loan is in default and unless we make it current, they *can forward our account up to the foreclosure dept'.

VR SAM, I thought that I read that lenders freeze or give special forbearance on accounts when they are listed the 90 days as a short sale. Are they threatning me or is there merit to this?  If we short sale or deed in lieu, I believe worst case he may have a conditional clearance (up for review every 6 months?)  If it slips into foreclosure before we have the opportunity to file a deed in lieu, I just don't understand.  Isn't it more cost effective for the lender/investor to wait out for the short sale/deed in lieu, especially as the VA said that they would take the property back, pay out to the lender and charge it against our entitlement. 

Anon - also what you mentioned regarding risk.  I know!  It's interesting as a service member stressed with a home that they can not sell out of state b/c of a transfer vs. a service member that has finally rid themselves of that home and has a regular budget again - who should they be more concerned of?  Personally, before this we had excellent credit, and had never been late with any creditor.  Spouse also has an excellent service record, and they have acknowledged this.  Without the house, we are back to a household plan of action, where we have money for needs, some wants, and savings.