Veteran Scammed Out of $200K After Buying House Based on Fraudulent Job Offer

The Deceptive Internship and Home Purchase

• 🎖️ A young veteran, after completing his military service and degree, moved his family to Florida for a military-sponsored internship.
• 🤝 The company owner promised a $180,000 salary, documented in an offer letter and employment contract, which enabled the veteran to secure a no-money-down VA jumbo loan.
• 🏠 Based on this promise, he purchased the owner's house for $830,000 with an $845,000 mortgage at a 6.75% interest rate, resulting in a nearly $7,000 monthly payment.

Fraudulent Employment and Financial Ruin

• 📉 Immediately after closing on the house, the owner cut his pay, making the offer letter fraudulent.
• 📉 Over two years, his pay was progressively reduced as the company was run into the ground, leading to his complete unemployment.
• 💸 He is owed over $150,000 in wages and has vacated the house, now facing a short sale that will leave him approximately $200,000 underwater.

Navigating the Short Sale and VA Loan

• ⚠️ The key phrase for the short sale is "without recourse," meaning the lender forgives the remaining debt.
• 🏦 The VA, unlike FHA or conventional loans, often pursues recourse, meaning they will sue for the difference if the short sale is not "without recourse."
• 📜 The veteran must ensure the short sale paperwork explicitly states "without recourse" to avoid further financial penalties from the VA.

Lessons Learned and Future Advice

• 💡 The situation is described as a "walking definition" of "if something sounds too good to be true, it is."
• 🚩 The veteran acknowledges being scammed and regrets not recognizing the warning signs at 22 years old.
• 🧠 The advice given is to learn from the experience to avoid similar pitfalls, emphasizing self-reflection on what allowed him to fall into the "bear trap."
• 🏡 It's recommended that a 22-year-old not buy an $860,000 home based on a salary that cannot be obtained elsewhere in the market.