Irwin's Offer to Purchase Grey's Property

When the Irwin's made an offer to purchase the Grey's property "subject to" the existing VA loan, it means that the Greys will remain primarily liable for any loss suffered by the government after a foreclosure on the VA loan.

In this scenario, the Irwins, as the purchasers, will not be held primarily liable for the loss because they agreed to take title "subject to" the existing loan. The responsibility for the liabilities, including funding fees, remains with the Greys unless a prior approval is obtained for the transfer of all liabilities.

If the transfer of the VA loan is not approved and the loan is transferred under the condition of "subject to" the mortgage, the purchaser (Irwin's) will not be responsible for the liabilities unless retroactive approval of the transfer is arranged. In that case, the purchaser can then take over the loan's liabilities.

Therefore, in this scenario, the Greys will be primarily liable for any loss suffered by the government after a foreclosure on the VA loan.