San Antonio Texas Military Short Sale Help-The VA Compromise Sale

San Antonio Texas Military Short Sale Help-The VA Compromise Sale

What's this thing called a Short Sale

You may have been hearing the term called Short Sale in regards to selling a home or even buying one for quite a while and have been wondering what exactly it is. Well, to put it simply, a short sale is when the lender of a home loan decides that they will accept a lesser amount than what is due on the mortgage to allow a sale of a particular home to proceed. For example, if a home owner has a balance of $120,000, and market value in your area is now at $90,000 for your home size and type, they may be willing to accept that offer. There are several things you must do to qualify for a short sale in San Antonio Texas, and for the sake of expediency, I will save that for another post sometime in the future. Why, because this post is about the VA Compromise Sale and I want to focus on how a VA Compromise Sale can truly help Soldiers, Marines, Sailors and Airmen if they may be facing foreclosure or a hardship.

What is a VA Compromise Sale

A VA Compromise Sale in San Antonio Texas is the VAs answer or solution to the traditional short sale for those Military members who have bought a home with a VA loan. What VA does in a VA Compromise sale, if approved, is pay the lender the difference in the shortage amount. For example, if we use the same scenario we did above and the Soldier owes $120,000 on the mortgage and fair market value turns out to be $90,000, VA will come in and pay the $20,000 and the closing costs. To put it in the exact words from the Department of Veteran's Affairs,

How Does A Compromise Sale Work?

When a homeowner receives an offer based on current market value that is lower than the total amount of the loan payoff, the homeowner can ask VA to approve a Compromise Sale. VA will review the situation with the mortgage company and if approved, pay the difference between the mortgage balance and the proceeds of the sale.

What a VA Compromise Sale Is Not

Even though we call a VA Compromise Sale a "Military Short Sale", it isn't a short sale in the true sense of the word because the lender is going to get what the military member owes on the home. A VA compromise sale is not a get out of jail free card or a way out of a home because you made a mistake and don't want to be a home owner anymore. It also isn't automatically approved. You must qualify for the VA Compromise sale and it is much like going through the Short Sale process. VA has turned over the VA Compromise Sale program to specially trained VA loss mitigators at the lending institutions you have your mortgage at. Things required for to be considered for a VA Compromise Sale are,

• Your loan must have been a VA loan
• A contract on your home for fair market value,
• A hardship letter detailing why you feel you need a VA Compromise Sale,
• A Financial Statement detailing all income, debts and assets,
• A VA appraisal
• A pay off statement from the mortgage company.

How Do I Know if I Can Qualify for VA Compromise Sale

First, if you have a hardship and have been missing mortgage payments and are in danger of getting foreclosed on, you need to call your lender and talk to them about your options. In some cases they may be able to do a loan modification program to reduce your payments or other like options. There are several programs that can help you. However, if you have a hardship and you really need to sell, (by the way, PCSing is now considered a hardship), the next thing (or first thing) you should do is get with a Realtor® in San Antonio Texas who is knowledgeable about the VA Compromise Sale and the Short Sale process.

There are many agents out there who do short sales, but are not aware that there is a program that can help those who have a VA loan. Short Sales and VA Compromise Sales can be quite complicated and you need a professional by your side to guide you through the process. I can help to talk to you about whether you are likely to qualify for a VA Compromise sale or not. The biggest thing is to make sure that number one, you don't try to do this yourself and number two, that you don't give up and go to foreclosure.

Although you may lose some of your VA eligibility doing a VA Compromise Sale, you have the ability to gain it back. If you get a VA foreclosure, it is my understanding that you will lose your VA eligibility forever. There is really no need for that to happen when we can prevent it.

The VA Compromise Sale Can Truly Help You

A VA Compromise Sale is a great program that can really help a Military member in need. With the tough times of today's San Antonio Real Estate Market, selling a home has become difficult at best in some areas of the city. Although San Antonio hasn't felt the tragic pinch of other Real Estate markets, we have still seen a slight downturn of the market and homes have decreased in value. As you well know, military members have an unstable life and can move every couple of years. In ages past, military members were able to sell their homes and move on without any worries. Well, that simply isn't the truth for everyone these days.

If you are having issues and you truly need to sell your home and you think you may need a short sale, and you have a VA loan, a VA Compromise Sale may be just the answer you need. For more information on preventing foreclosure, you can go to the Department of Veteran Affairs or just give me a call. I can set up a no obligation consultation to see if a VA Compromise Sale can be your answer.