This VA Compromise short sale is now under contract! 119 Ferry Rd., NE in Fort Walton Beach Florida is pending and awaiting short sale approval. What is a VA Compromise Sale? It is a type of short sale specifically for Veterans Administration or VA home mortgage loans. A short sale occurs when real property, such as a house or townhouse, is sold with proceeds (net sale amount) less than sufficient to pay off the mortgage or mortgages. A VA Compromise Sale follows these guidelines:
- You may only sell the home for fair market value
- The closing costs must be reasonable and customary
- You must have a valid financial hardship, such as loss of income, disability, divorce, etc.
- There should not be a second mortgage on your property in most cases
- You should ensure your sales contract is “contingent and/or subject to the approval of a VA Compromise Sale”
Note that VA Compromise Sales will affect the veteran’s remaining “entitlement” which is the benefit that allows them to obtain a VA mortgage. The entitlement that was used to purchase the property will not be available for a future home purchase unless paid back. Often, however, there is leftover entitlement that can be used for another VA mortgage. I’ve helped many veterans with VA Compromise short sales who were able to buy another home. VA Compromise Sales are common near Eglin Air Force Base and Hurlburt Field in Fort Walton Beach, Crestview, Navarre, Niceville, Destin Florida and surrounding areas.
A possible benefit to a VA Compromise Sale is that you may be eligible for $1500 in relocation assistance. In most cases, this will be paid to you if your lender, also called mortgage or loan servicer, agrees and the net proceeds from the sale are at least 85.05% of the appraised value. Finally, a deficiency judgment is not typically pursued, where the VA or your lender will try to recoup their loss, unless your original VA mortgage was obtained prior to 1990 and no fraud, misrepresentation or bad faith were evident.
Questions?
It’s Wendy… It’s Sold!
Wendy Rulnick, Broker, Rulnick Realty, Inc.
Call 850-650-7883 ext 204
Email Wendy: itswendy@rulnickrealty.com
Debe, that is in the official VA guidelines, truth be told if it's a small second and the release amount is low enough to allow the 85.05% net, or other arrangments are made by the seller, such as promissory note, it will still work.
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