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VA COMPROMISE SHORT SALE SALE PROGRAM
The VA Compromise Sale Program is offered to active duty service members who receive PCS orders and need to sell their
home for less than what they owe on their mortgage. Your home must be listed at fair market value, and all "reasonable"
closing costs are paid by the VA. Selling under the VA Compromise Sale Program will protect your assets and as stated
under VA Guidelines, if your loan closed on or after January 1, 1990, you will only owe the Government if there was
fraud, misrepresentation, or bad faith on your part. So for active duty service members who receive PCS orders and
have a VA loan, using the VA Compromise Sale Program is a huge benefit afforded only to you! As a service member, you
have a great "gift" to be allowed to sell for less using the VA Compromise Sale Program and it is always your best
option if you have a VA mortgage and receive PCS orders.
It's difficult to predict how your credit score will be affected after a VA Short Sale but sellers who are not in behind
on the mortgage payments, and must simply PCS out of the area, your scores will be slightly affected. It's been reported
that credit scores will drop by 50 to 150 points, but typically rebound after a few months.
Deed in Lieu of Foreclosure
It is highly advisable that you do not allow your lender to talk you into a Deed in Lieu of Foreclosure because giving
the keys back to your lender is almost as bad as an actual foreclosure itself. A Deed In Lieu of Foreclosure
insinuates that you are having financial difficulties and are behind in your mortgage payments so unless you are behind,
selling under the VA Compromise Sale Program is your best option. Turning the keys over to your lender will
severely lower your credit scores and in addition, it will also prevent you from buying a home within the next 7 years
too!
HAFA SHORT SALE PROGRAM FOR CIVILIANS OR NON VA MORTGAGES
If you're a civilian or a veteran with a conventional or Fannie Mae mortgage, and if you have suffered a hardship such
as involuntary financial loss, unexpected medical expenses, involuntary job relocation, death of primary wage earner, or
other financial hardship, then selling as a short sale may be right for you. Even if you do not fall under the HAFA
short sale guidelines, depending on your lender, you may qualify for other financial hardship programs.
If you feel you might qualify under any short sale program, first contact a qualified real estate professional and then
contact your lender and speak to them. Any of our qualified short sale real estate specialists will be happy to assist
you! Remember, there's never a cost to discuss your specific short sale situation and all of our conversations
will be held in strict confidence and discretion. Its a tough market, but we are here to help!
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