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I am a veteran myself, but I can't imagine how this guy still has a mortgage on his house. It should have been paid off long time ago unless he has been taping into the equity. (bad)
If I were him I would stay in the house as long as possible and then when he finally gets evicted, rent somewhere.
Great moments of bailed out Freddie Mac.
http://nalert.blogspot.com/2012/09/freddie-mac-customer-service-disabled.html