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My fiance' sold his home to his ex-girlfriend via a Buy and Sell Agreement. The ex-girlfriend was to obtain her own financing within five years (that was over 6 years ago). Now, my fiance' still has the mortgage in his name (a $70K liability on his credit), but the ex has possession of the home and is making payments to my fiance's mortgage company. She has horrible credit and cannot get a mortgage in her own name. Now, we have retained an attorney, but she is trying to get my fiance' to sign assumption papers. My question is: With regard to VA laws, does she actually "own" the house or did she just cloud the title? Also, since there was never a release of liability filled out, my fiance' is still responsible financially and with the VA, although his ex has lived there for more than 6 years now. She is basically just paying his mortgage/renting. Also, my fiance' received NO money from the sell… even though his name and VA entitlement was the ONLY one on the loan. Help?

VA loans are assumable. You need to contact a real estate attorney.