Thoughts on this mortgage structure

[clubmanager]

My employer is willing to guarantee a home loan on a house within the community. It is a $140K house (worth more) and I have $10K down. They want me to contact 'our' banker with whom we have done hundreds of deals and continue to have a strong relationship with. I will take out a personal loan for the full amount and pay it back over 10 years. After two years, I'll likely get the VA loan guarantee and get my employer off the hook.

My 341 meeting is on Friday and I assume that I am not to do any of this until after discharge or does it even matter at this point? They know about the money I would use as down payment as it was disclosed and is considered exempt.

Anyway, its all a little strange and just wanted to see how likely it is to actually work. The only thing I see working against me are any banking regulations but that isn't my field.

thanks!

[HHM]

1. Why would your employer gaurantee the loan?
2. I honestly can't imagine any bank agreeing to this, they are going to give you $140,000 unsecured personal loan, but who am I to say.

There is nothing wrong per se with what you are proposing. Let me ask you this, if you were to miss a payment...what would happen between you and your employer, I am not sure that is the best situation to put yourself in.

[clubmanager]

It is a long-story re: why they would want to do it but they required me to live in the community and they want to keep me based on what I have done here in the past year. I have a key role in managing this very large community and am in charge of many projects that far exceed the needed mortgage amount. In addition, we have a $6M project coming up and I am spearheading all of this. They need me and I need them at this point.

Re: the bank; the loan is secured by the property and the employer would pay in the event of default so there is no downside at all for the bank. My employers exposure is if I default but they could sell the property. They pretty much control my ability to pay my mortgage and it is affordable based on my, and my wife's income.

All in all, there is little risk to my employer and no risk to the bank.

[HHM]

Ok, I see, then strictly speaking, it is not an unsecured personal loan. If the loan is going to be secured by the property, then you have a mortgage that carries an additional guarantee by your employer. I see no problem in that.

[clubmanager]

Cool. I'll let everyone know what happens after I speak with the banker. cheers!

[clubmanager]

spoke with the banker

and he is going to do the loan! However, he wants the bk finished so I don't pull my employer into the bk somehow....and obviously that makes sense.

I have my 341 meeting on friday. What happens next and how long does it take?

thanks!