Expert: liznarr - 10/14/2009

Question
In short:  I have been in the military for over 20 years.  I was expecting to be medically discharged, which was unexpected.  I was living on base and needed a place to live when I got discharged.  I signed a contract to have a house built.  In the mean time, I fought the medical board and the military decided to retain me on active duty.  I then put in my desire to retire (you can forecast up to one year out) and I was looking for a new career.  Headquarters responded back and said even though I have over 20 years of service, I cannot retire, because I must do 10 years of commissioned service.  I have 3 years left to reach 10 years commissioned service. I will most likely be reassigned in 4 months. I am supposed to close on the house today.  Is there any way out of this contract?

Answer
Hi Rick,

Wow, what a dilemma.  I can sure sympathize with your situation.

If there was a default on the Seller’s part, that would be grounds for you not to close.  

If you are obtaining a VA loan, there “could” be something connected with the VA loan that would allow you a military out, but I really do not know the answer to your question.

I would suggest you contact a good attorney as quickly as possible for legal advice.

If all else fails, possibly you could rent the house out for the next three years – or reimburse the Seller for any of his/her expenses to date and ask that you be released from the Contract.

Good luck to you, and sorry I was not of more help.

Regards,
Elizabeth