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VA Short Sale Guidelines

 

My tweet peep @WendyRulnick was kind enough to make this available for a re-blog. If you haven't checked out her blog you're missing some very interesting and useful posts. If you are not following her on Twitter you may want to reconsider your position for she is a very interesting Realtor. BTW, it's her 5th year wedding anniversary today. Go over and say hello (LOL). ;-)

 

VA Short Sales

The Emerald Coast of Florida has a high military population with both active duty and retired air force personnel.  Eglin Air Force Base is located in Fort Walton Beach, and Hurlburt Field is in Navarre, Florida.  Duke Field and NAS Whiting Field are nearby.  We will be seeing an increase in short sales for GI borrowers when they must relocate during their PCS moves (permanent change of station).  VA Short Sales are called "Offers in Compromise", "Compromise Claims" or "Compromise Sales".  The VA may accept a Compromise Sale if the cost to the VA is determined to be less than that of foreclosure. 

The VA website says: "If the borrower is unable to sell the property for an amount that is greater than or equal to what he/she owes on the loan, including closing costs, VA may pay a "compromise claim" for the difference in order to allow the private sale to go through. The borrower can sell the property to a buyer who gets his/her own financing or to a buyer who wants to assume the loan. However, with a compromise assumption, the lender does have to agree to have the amount of its guaranty reduced by the amount of the claim payment. In order to be considered for a compromise sale, several factors must be considered."

VA Compromise Sale Factors:

1. You may only sell the home for fair market value.

2. The closing costs must be "reasonable and customary".

3. You must have a valid financial hardship such as loss of income, relocation, death of breadwinner, etc.

4. There should not be a second mortgage on your property, unless it is "insignificant".  If so, you might ask the junior lienholder to release the lien and convert it to a personal note.

5. You should ensure your sales contract is "contingent and/or subject to the approval of a VA compromise sale."

If you have a VA loan, and need to do a "Short Sale" or "Compromise Sale", here is what you must do to begin the process:

1. Contact you lender to see if they are an approved VA Servicer Loss Mitigation lender and/or contact the VA regional office servicing your loan directly.

2. Fill out a financial status report form provided by your lender or the VA.

3. Complete a letter of request.

4. Complete a Compromise Agreement Sale Application. You can get this form from the VA or the approved lender.

Final Important Points:

1.  Your lender does not have to agree to a Compromise Sale.

2.  For VA loans originated on or before December 31, 1989, you might have to sign a promissory note at closing agreeing to repay VA for the deficiency remaining after the property is sold.

3.  An experienced Short Sale Realtor should guide you through the sales process, help you determine fair market value and prepare your package for submission to your lender or the VA.

For more information, contact your VA Regional Loan Center.

It's Wendy!

Wendy Rulnick, Broker, CRP, CRS, GRI, ABR     Rulnick Realty, Inc.

Search Destin Florida real estate and vicinity.

Short Sale Pre Foreclosure Help.

Call toll-free 1-877-ITS-WNDY (1-877-487-9639) or local 850-650-7883 ext 204

Email itswendy@rulnickrealty.com

Wendy Rulnick specializes in real estate sales, short sales, traditional sales on Emerald Coast of Florida: Destin Florida real estate, Santa Rosa Beach, Fort Walton Beach, Niceville, Bluewater Bay, Navarre, Seagrove Beach, Watercolor, Sandestin, Seaside, Dune Allen, Blue Mountain Beach, Freeport, Rosemary Beach, Mary Esther, Shalimar, Eglin AFB, Hurlburt Field.   Wendy Rulnick, Broker and Realtor, has been selling real estate for almost 20 years.  She has won numerous awards, including the coveted ADDY for advertising design. An expert marketer of real estate listings, she also negotiates successfully to her buyers' and sellers' advantage. She is supported by a team of top buyer specialists. Wendy lists and sells homes, condos and townhomes in Destin Fl and the surrounding areas.  She was ranked in the top ½ percent of all Realtors on the Emerald Coast of Florida in 2008 for resale listings sold.

All Rights Reserved. "VA Short Sale Guidelines" Contact Wendy Rulnick regarding Destin Florida real estate and vicinity. Copyright © 2008 by Wendy Rulnick.This site, Wendy Rulnick or Rulnick Realty, Inc. is not providing legal or tax advice.  The information provided is for educational and informational purposes only.  It is recommended that sellers considering a short sale should consult an independent legal and tax advisor for more information.

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Comment balloon 12 commentsC Tann-Starr • January 01 2009 10:33AM

Comments

Hi Carolyn, thanks for the re-blog on the "compromise claim" available through the VA. Very helpful in those circumstances needed by our military. Just wanted to stop by and wish you and your family a Happy New Year C. May it be one of your prosperous and happiest ever!!

Posted by Gary Woltal, Assoc. Broker Realtor SFR Dallas Ft. Worth (Keller Williams Realty) almost 10 years ago

Thank you, Gary. May God bless you and your family. Wishing you the very best for the New Year. ;-)

Posted by C Tann-Starr (Tann Starr & Associates, Inc.) almost 10 years ago

Beautifully done with great info!~  Happy New Year to you and your lovely family!

Posted by Celeste "SALLY" Cheeseman, (RA) AHWD CRS ePRO OAHU HAWAII REAL ESTATE (Liberty Homes) almost 10 years ago

Thank you, C-Sally-C. Wishing you and yours the very best for 2009. ;-)

Posted by C Tann-Starr (Tann Starr & Associates, Inc.) almost 10 years ago

Excellent information! Thanks for sharing.

Posted by Maria Morton, Kansas City Real Estate 816-560-3758 (Chartwell Kansas City Realty) almost 10 years ago

C. Nice blog. I went over and wished her a happy anniversary.

Posted by Laura Watts (Positive Properties, LLC) almost 10 years ago

Well, hopefully, anybody who bought a home prior to 1989 has plenty of equity and doesn't need to do a short sale.

Happy New Year Wendy and C!

Elizabeth Weintraub Land Park Real Estate Agent in Sacramento

Posted by Elizabeth Weintraub Sacramento Real Estate Agent, Top 1% of Lyon Agents, Put 40 years of experience to work for you (Lyon Real Estate) almost 10 years ago

Maria, you are very welcome. :-)

Thank youm Laura. :-)

Elizabeth, wishing you and yours the very best for 2009. <3 C. ;-)

Posted by C Tann-Starr (Tann Starr & Associates, Inc.) almost 10 years ago

Hi C, I appreciate this re-blog. VA Compromise Sale Factors are important to know. I used to do a lot of VA loans in the past. I expect them to resurface, along with the FHA loans.

Posted by Marian Gregor-Ann, Arbor area Real Estate (Keller Williams) almost 10 years ago

I have yet to do a VA loan and have been reading up on the subject. I may want to pick your brain later, Marian (LOL).

Posted by C Tann-Starr (Tann Starr & Associates, Inc.) almost 10 years ago

C, A ok.   Say, I watched the little minon's Shea video. That was so cool. Great choice of music & I loved the color changes. You have some great tech. abilities ~ that's for sure.

Posted by Marian Gregor-Ann, Arbor area Real Estate (Keller Williams) almost 10 years ago

Thank you, Marian. I have fun including the kids in my projects. They add a wonderful element of surprise to the proceedings (LOL). There are days it's a wonder I get anything done at all (LMAO). 

Posted by C Tann-Starr (Tann Starr & Associates, Inc.) almost 10 years ago

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