NOTE: The following procedures are ONLY for homeowners that have an VA Loans and are looking to do a VA Short Sale which is correctly termed VA Compromise.
OVERVIEW
If a homeowner is unable to sale his or her property for a greater than or equal to the amount of the loan, the VA may pay a "Compromise Claim" in order for the sale to go through.
We work with VA Short Sales, VA loans on a regular basis. A VA Short Sale correctly called VA Compromise is typically one of the easier transactions when comparing them to other types of short sales. Please note that you may be required to pay the Compromise Claim off in the future if you want to use your VA Certificate again, otherwise you will have to utilize other loan programs such as FHA or conventional financing on future purchases.
FACTORS THAT ARE CONSIDERED
- Property must be sold for fair market value.
- The closing costs must be customary.
- The Compromise must be less costly than foreclosure.
- There must be a financial hardship for the seller.
- The seller must first get the home under contract before being considered for the propgram.
SELLER REQUIREMENTS
- Seller must complete the Compromise Agreement Application, which we will supply to you.
- The VA Short Sale packet will need to be completed which is also provided by the Jennifer Sanchez Team.
ALTERNATIVES
Servicemembers Civil Relief Act
Veteran borrowers may be able to request relief pursuant to the Servicemembers Civil Relief Act (SCRA). SCRA is intended to ease the economic and legal burdens on military personnel during their active service. In order to qualify for certain protections available under the Act, the borrower must request protection under the Act, and the loan must have originated prior to the current period of active military service. SCRA may provide for a lower interest rate, or prevent foreclosure or eviction up to nine months from period of military service.
Assistance to Veterans with VA-Guaranteed Home Loans
When a VA-guaranteed home loan becomes delinquent, VA provides supplemental servicing assistance to help cure the default. The servicer has the primary responsibility of servicing the loan to resolve the default. However, in cases where the servicer is unable to help the veteran borrower, Loan Guaranty has Loan Technicians in eight Regional Loan Centers and two special servicing centers who take an active role in interceding with the servicer to explore all options to avoid foreclosure. Veterans with VA-guaranteed home loans can call (877) 827-3702 to reach the nearest Loan Guaranty office where loan specialists are prepared to discuss potential ways to help save the loan.
The US Department of Veterans affairs who are encountering problems with making payments are urged to access the following website for information on alternatives to foreclosure including loan modifications, VA Short Sale aka VA Compromise and repayment plans. Visit www.benefits.va.gov/homeloans/veteran.asp for more information.
TAKING THE NEXT STEP
If you would like information on VA Short Sale, VA Compromise please fill out the following form. We will send you the VA Short Sale, VA Compromise packet to get you started. As well we will schedule a phone consultation with you to go over specific details pertaining to a VA Short Sale and VA Compromise.