How to Get a VA Compromise Sale Approved Netting Under 88.13%

Real Estate Broker/Owner with Rulnick Realty, Inc.

VA Compromise Sales

I just got an amazing approval on a Crestview Florida VA Compromise Sale from BB&T!  You know the Veterans Administration requirement that the net proceeds of the sale be no less tham 88.13% of the appraised value? And the requirement that the VA Compromise Sale appraisal is firm for six months? This was a breakthrough approval that was about $25,000 less than 88.13% of the appraised value!  How did I achieve this?

First, some background. The Crestview Florida home on a few acres needed work. There were signs of a previous roof leak and rodent damage. This was detailed in a home inspection report for a buyer who had "walked".  His offer was the one that triggered the VA liquidation appraisal that was ordered by BB&T.  I had noted the problems in the MLS, including a copy of the inspection report with the buyer's permission. These facts were apparently ignored by the VA appraiser.  

After three months, and excellent communication with the BB&T negotiator, I precariously lowered the price. Yes, LOWER than what would net the holy 88.13%. She said she was a firm believer in doing anything you could to help the military service member and she would fight for an approval even if we were low. (Go BB&T!) Finally, an offer came in.  To support our case of lower value, I provided the negotiator with a report of all the feedback from showings, such as:

5/16/2013 There seems to be quite a bit of water damage to the ceiling in the front bedroom. This buyer is retiring and does not want to "fix anything up". I don't think we will be writing an offer

4/29/2013 the house smells like animal pee and it's strong. This turned the buyer off and he's looking elsewhere. I've shown this house twice now and it does not show well. Not sure what can be done other than sealing the floors and putting in new carpet.

4/18/2013 their concern is the roof it appears there is an active leak and erosion

In addition, I provided a copy of the previous buyer's home inspection. The BB&T rep sent that along with the contract, HUD, buyer pre-approval and home inspection to the VA. She said the VA tech replied "Rodents! This cannot be good!".  72 hours later, the VA Compromise Sale was APPROVED.

Many short sale lenders don't assign a "permanent" negotiator like BB&T to a VA Compromise Sale. This direct line of communication and caring were critical in getting the approval. What can you do if you are dealing with any other lender, such as Bank of America or Wells Fargo, who are much more immutable about VA Compromise Sales? You can try as I did, or speak directly with the VA. Email

It's Wendy!

Posted by

"It's Wendy... It's Sold!"

Wendy Rulnick, Broker/Owner Rulnick Realty, Inc.

Call Wendy Rulnick 1-850-259-0422

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Wendy Rulnick helps real estate buyers and sellers on the Emerald Coast of Florida.

Rulnick Realty


Comments (18)

Sharon Alters
Coldwell Banker Vanguard Realty - 904-673-2308 - Fleming Island, FL
Realtor - Homes for Sale Fleming Island FL

Wendy, congratulations! It is good to read a positive story about a VA Compromise Sale approved netting under 88.13%.

Aug 02, 2013 08:22 AM
Laura Cerrano
Feng Shui Manhattan Long Island - Locust Valley, NY
Certified Feng Shui Expert, Speaker & Researcher

Wow! I never thought of this for when I buy a home :)


Love and light,


Aug 02, 2013 08:34 AM
Jimmy Faulkner
Florida. Homes Realty & Mortgage - Wantagh, NY
The Best Of St. Augustine
Now that is really sticking with a transaction. You are to be applauded for your fine work in helping the buyer and helping the economy. So they say being a Realtor is easy.
Aug 02, 2013 08:59 AM
AJ Heidmann ~ CRS
McEnearney Associates, Inc. - Alexandria, VA
YOUR Alexandria & Arlington, VA Real Estate Expert

Wendy - Congrats and this is an excellent case of perseverance and great notes/reports to get the actual condition of the property across.

Aug 02, 2013 09:02 AM
William May
Century 21 / Union Realty - Torrance, CA
Your Family Realtor For Life

Excellent work Windy, We as real estate agents should always do our homework and be problem solvers. You set the bar. Thank you for your post. 

Aug 02, 2013 09:29 AM
Mitch Muller - Charlotte NC Real Estate
ProStead Realty Charlotte, NC CRS SRES - Charlotte, NC
Certified Residential Specialist

Wendy, Congratulations on a great job! Perseverance does pay off!

Aug 02, 2013 10:20 AM
Wendy Rulnick
Rulnick Realty, Inc. - Destin, FL
"It's Wendy... It's Sold!"

Thank you, Everyone!  

Aug 02, 2013 10:38 AM
Cindy Jones
Integrity Real Estate Group - Woodbridge, VA
Pentagon, Fort Belvoir & Quantico Real Estate News

Had this home been empty for awhile?  Congratulations for having all the ammo for getting a difficult VA Compromise sale done.

Aug 02, 2013 12:16 PM
Gita Bantwal
RE/MAX Centre Realtors - Warwick, PA
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel

Wendy, Congratulations on the sale . Thank you for sharing the information and for the inspiration.

Aug 02, 2013 08:51 PM
Bill and MaryAnn Wagner
Wagner Real Estate Group - Ocean City, NJ
Jersey Shore and South Jersey Real Estate
Congratulations! Your hard work and tenacity paid off. Nice to hear there are some great negotiators out there.
Aug 02, 2013 10:11 PM
Michael Setunsky
Woodbridge, VA
Your Commercial Real Estate Link to Northern VA

Wendy, giving them the facts and working with a cooperative lender did the job. Way to go!!

Aug 02, 2013 10:43 PM
Wendy Rulnick
Rulnick Realty, Inc. - Destin, FL
"It's Wendy... It's Sold!"

Cindy Jones - The home was built in 1983 and had only been empty for a few months. The seller PCS'd.

Aug 02, 2013 11:31 PM
Laura Kelley
Keller Williams Realty- Carmel Valley/Del Mar - San Diego, CA
Your Home, Your Lifestyle, Your Real Estate Goals

Thank you for Sharing. I too love working with the military as I have family serving.


Make it a great day!

Aug 03, 2013 12:33 AM
Wendy Rulnick
Rulnick Realty, Inc. - Destin, FL
"It's Wendy... It's Sold!"

Laura - I love helping the military, too! It's very rewarding.

Aug 03, 2013 12:36 AM
Elizabeth Weintraub Sacramento Broker
Elizabeth Anne Weintraub, Broker - Sacramento, CA
Put 40 years of experience to work for you

This blog, Wendy, is an excellent example of why agent feedback is so crucial to our listings! Yet, so many agents never respond when the request is made. In this business, what comes around tends to go around.

Congratulations on your persistence and creativity paying off!!

Aug 03, 2013 01:05 AM
Michele Peterson
Sellstate Realty First - Roseville, CA
Sellstate Realty First

Wendy what a great reward being able to help a Veteran finalize a short sale and over come the challenges that his home presented to potential buyers.  Feedback is important and I am surprised daily at how many agents never contact the showing agent to gather this information.  Not even an email?

I follow up with every showing and request feedback from the agent and the opinion of the buyer. It helps everyone understand the market and effectively make changes until we get to "Sold"

Aug 03, 2013 02:46 AM
William J. Archambault, Jr.
The Real Estate Investment Institute - Houston, TX


What can I say this is already featured!

The lesson here is to work with a professional!


Aug 03, 2013 04:45 AM
Wendy Rulnick
Rulnick Realty, Inc. - Destin, FL
"It's Wendy... It's Sold!"

Elizabeth Weintraub and Michele Peterson - I ask for feedback for every showing via email. I had a lot more comments that I sent in to the VA. I agree that it is important to gauge agent and buyer response and get the "pulse" of the market, too.  I get replies from 90% of my inquiries.  You NEVER know when this information will come in handy, as it did, above.

Aug 04, 2013 02:05 AM