Military member in San Diego facing foreclosure with VA loan - The good news is there are options even after being denied a loan modification. If you're pcsing more than 50 miles from your current duty station and not behind on your mortgage payments, you may qualify for the US Government Housing Assistance Program or HAP benefit. The home must be the military member's primary residence and have lost more than 20 percent of it's value.
The HAP benefit has helped many members and is often a much better alternative to a traditional short sale. There is no negative impact on the credit score and the lender/lien holder is not involved in the transaction. The member must meet all the program's complete criteria in order to qualify and submit a package. Once the property is listed and an offer is accepted it typically takes about 45 -60 days for the transaction to close in San Diego.
If you don't qualify for the HAP benefit, then doing a short sale might be the next best option. A short sale is when the property is upside down and the lender/lien holder agrees to accept an offer from a buyer for less than the mortgage owed. Nowadays, the short sale process on average takes about 2 -6 months after receiving an accepted offer. There is a negative impact on the credit score but not as significant as a foreclosure.
Letting the property go to foreclosure is another option but is not recommended if there are other alternatives. A foreclosure is the most severe on an individual in regards to the consequences. A foreclosure will have the highest negative impact on one's credit score, and it is one credit item that is almost impossible to have repaired. For military members a foreclosure can have a negative impact on security clearances and can result in job reassignment or loss.
A deed-in-lieu can also be an option when the bank agrees to take back the property to forgo the cost and time of foreclosure. it is strongly advised that every military member in San Diego facing foreclosure with a VA loan seek the help of a certified tax attorney or professional.
Lorraine Santirosa is a military relocation specialist in San Diego that works tirelessly to help military families with their real estate needs. For more information, go to www.sandiegohousingoffbase.com or call 619-248-5484