A Plethora Of Misinformation Always Makes For Interesting Discussions

By
Real Estate Agent with Integrity Real Estate Group
https://activerain.com/droplet/wsk

Hot ButtonOne great thing about social media is when inaccurate information surfaces you quickly recognize your own and fellow agent's hot buttons.

Even though it's still early in the week two of my hot buttons have been hit and by the reaction of a few other agents who also have seen the information, theirs have as well.   The first was a blog post written by an agent (I won't include a link) stating that a veteran or active duty military member would lose their benefits if they completed a short sale or foreclosure.  Say what?

A veteran or military member who completes a VA Compromise sale will lose a portion of their future VA Loan Benefits.  Per the VA:  "Should VA agree to pay the difference between the sales proceeds and the total debt to complete the compromise sale process, the portion of the homeowner’s entitlement used to guaranty his loan will remain tied up until VA is reimbursed in full."  This is the only benefit a veteran or active duty service member will lose.  It's not their retirement pay, their medical benefits or any other benefit they are entitled to by law.  A sweeping statement that states a they will lose their benefits forever is scary and wrong.

The second piece of information is that a short sale or foreclosure automatically means the loss of a security clearance.  Apparently this information is being taught in CDPE classes throughout the country.  Living in the Washington DC area, where security clearances are a big deal it helps to review the rulings from the Defense Office of Hearings and Appeals (DOHA) clarifying how a short sale or foreclosure may be viewed.

"Twenty-two administrative judge decisions dealing with foreclosures and short sales were reviewed, where clearances were granted and not appealed. These were examined to see what facts were sufficient to meet the initial challenge of convincing an Administrative Judge while at the same time were sufficient to satisfy Department Counsel not to appeal. The common thread in all of these cases is that: (1) applicants were victims of circumstances not of their own doing; (2) they had not been speculators in the housing market who were caught when the bubble burst; (3) they had not succumbed to fraudulent schemes “too good to be true” as a result of their own greed; and (4) they had made good faith efforts to meet their other debts after the loss of their homes by foreclosure or short sale."

I'm not going to tell someone that their security clearance is not in jeopardy if they undertake a short sale or their home goes to foreclosure. At the same time I'm also not going to make a blanket statement that you will for a fact lose your clearance.  I have a former short sale client who is employed in a Top Secret Clearance position in the government and another who works for a government contractor with a security clearance.  What both of those individuals made sure they did was talk to the appropriate personnel in their offices before they started the short sale process and kept them apprised of what was happening. 

It's important for all of us, myself included, to make sure we do as much fact checking as possible before we post a blog.  The very same people we are trying to help could be hurt by wrong information.

 


Posted by

                                   Real People*Real Lives*Real Estate

If you are interested in learning more about the Northern Virginia Real Estate market including Alexandria, Arlington, Fairfax and Prince William Counties give Cindy Jones and Integrity Real Estate Group a call at 703-346-2213.

Military Relocation Specialist serving military families relocating to and from the Pentagon, Fort Belvoir, Quantico MCB and all of the Military District of Washington installations. 

Military Relocation Professional


Check out www.varealestatetalk.com and www.cjrealtygroup.com for more information.

Integrity Real Estate Group
 
Real People*Real Life*Real Estate

Licensed in the Commonwealth of Virginia



 

 

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Re-Blogged 3 times:

Re-Blogged By Re-Blogged At
  1. Shirley Parks 02/28/2012 09:08 AM
  2. Lenn Harley 02/28/2012 08:16 PM
  3. Cheryl Thomson REALTOR Army Ret 02/28/2012 10:15 PM
Topic:
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Tags:
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military benefits
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military short sales
va compromise sale
misinformation on blogs

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Cindy Jones
Integrity Real Estate Group - Woodbridge, VA
Pentagon, Fort Belvoir & Quantico Real Estate News

Carie-thanks.  I had to go back recently for an article I'm writing for the Washington Post as they wanted the source of my information.  Even though it's something I've known for many years I had to back it up with facts.

Feb 29, 2012 09:12 AM #79
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Cindy Jones
Integrity Real Estate Group - Woodbridge, VA
Pentagon, Fort Belvoir & Quantico Real Estate News

Carla-what you mean the seller doesn't pay the buyers agent?  In reality doesn't the buyer pay both agents since the cost of the commission is in the sales price of the house?  Okay I'm sure that idea has been argued before :-)

Feb 29, 2012 09:13 AM #80
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Cindy Jones
Integrity Real Estate Group - Woodbridge, VA
Pentagon, Fort Belvoir & Quantico Real Estate News

Kristin-maybe you can go back to the CDPE gurus and ask them to check their information before they scare folks away from a short sale.

Feb 29, 2012 09:14 AM #81
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Cindy Jones
Integrity Real Estate Group - Woodbridge, VA
Pentagon, Fort Belvoir & Quantico Real Estate News

Lyn-wow lots of confirmation that this information is out there and without much substantiation to back it up.

Feb 29, 2012 09:15 AM #82
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Cindy Jones
Integrity Real Estate Group - Woodbridge, VA
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Bill-there is a time and place for half baked ideas.  I've had plenty of them but don't post them as facts on a blog.

Feb 29, 2012 09:15 AM #83
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Cindy Jones
Integrity Real Estate Group - Woodbridge, VA
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Evelyn-I'm not an expert in VA Compromise sales but I do know it doesn't mean a overriding loss of benefits for a military member.

Feb 29, 2012 09:16 AM #84
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Cindy Jones
Integrity Real Estate Group - Woodbridge, VA
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Thanks David.  I know since you are in this area you likely get the same questions about how short sales will impact clearances.

Feb 29, 2012 09:17 AM #85
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Cindy Jones
Integrity Real Estate Group - Woodbridge, VA
Pentagon, Fort Belvoir & Quantico Real Estate News

Jay-there is no way of knowing how many other people picked up this same information and are spreading it around the internet. 

Feb 29, 2012 09:18 AM #86
Rainmaker
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Mary Borth
Bloomington-Normal, IL
LuxeHomesBN.com

Great point! I like to think people don't believe everything they are told. But unfortunately some do.

Feb 29, 2012 09:33 AM #87
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Cheryl Ritchie
RE/MAX Leading Edge www.GoldenResults.com - Huntingtown, MD
Southern Maryland 301-980-7566

What a good informative post from you...like usual, of course!

Feb 29, 2012 12:40 PM #88
Rainmaker
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Lloyd Binen
Certified Realty Services - Saratoga, CA
Silicon Valley Realtor since 1976; 408-373-4411

Cindy,

It would be silly for me to not defer to your expertise on this subject.  Out here we did VA loans in the 1970s, but not since then as our prices increased so much they exceeded VA loan limits.

Feb 29, 2012 12:48 PM #89
Rainmaker
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Kathy Sheehan
Bay Equity, LLC 770-634-4021 - Atlanta, GA
Senior Loan Officer

It is the misinformation that generally causes problems for the rest of us.

Feb 29, 2012 09:18 PM #90
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Cindy Jones
Integrity Real Estate Group - Woodbridge, VA
Pentagon, Fort Belvoir & Quantico Real Estate News

Mary-that's one reason the scammers are still able to hurt so many people.

Feb 29, 2012 10:41 PM #91
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Cindy Jones
Integrity Real Estate Group - Woodbridge, VA
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Cheryl-thank you.  Hope you are doing well.

Feb 29, 2012 10:42 PM #92
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Cindy Jones
Integrity Real Estate Group - Woodbridge, VA
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Lloyd-VA does jumbo loans and in our area the limit is high enough to work for most buyers.

Feb 29, 2012 10:43 PM #93
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Cindy Jones
Integrity Real Estate Group - Woodbridge, VA
Pentagon, Fort Belvoir & Quantico Real Estate News

Kathy-I can't imagine leaving information on-line when you've been told it is incorrect.

Feb 29, 2012 10:44 PM #94
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Brenda Mullen
RE/MAX Access - Schertz, TX
Your San Antonio TX Real Estate Agent!!

Well, since I have been out of the net, I apparently missed this post.  Glad I did.  Blanket statements about anything need to be verified, especially when you are talking about Military Organizations.  They are in a whole different world, and if you don't know it, then making unfounded statements are going to cause problems.  I certainly hope that this person has changed the post or enough folks were informed of the correct answer.  Wow.

Mar 01, 2012 02:50 AM #95
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Cindy Jones
Integrity Real Estate Group - Woodbridge, VA
Pentagon, Fort Belvoir & Quantico Real Estate News

Unfortunately Brenda the post still remains.  A number of people have emailed the agent and his response appears to be so what. 

Mar 01, 2012 03:15 AM #96
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Rebekah Radice
Imagine WOW! Digital Marketing Agency - Burbank, CA
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Cindy - Veteran benefits are such an important topic and one that is very near and dear to my heart having worked with military buyers for 15 years.  I appreciate your diligence in trying to guide the original blogger towards the correct information and in clearing the entire matter up in your post above.  While I missed the original post, your response is far more important in providing information that many vets do not know or understand.

Mar 01, 2012 05:13 AM #97
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Cindy Jones
Integrity Real Estate Group - Woodbridge, VA
Pentagon, Fort Belvoir & Quantico Real Estate News

Rebekah-military service members have enough to go through without reading a post saying in today's tough economic times that they will lose their benefits if they lose their home.  Thanks for stopping by.

Mar 01, 2012 05:20 AM #98
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