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This home in The Meadows, in Navarre Florida was just approved as a VA Compromise Sale. The gorgeous 2008 property with in-ground pool and three car garage, went under contract in about 30 days. We prepared the VA short sale package for Citi Mortgage, faxed it, followed up and received approval for our seller in 24 days!

What is normally included in a simple VA Compromise Sale package?
Hardship Letter
Dodd-Frank Certification
Two years tax returns
Financial worksheet
Proof of Income
Bank Statements
Preliminary Settlement Statement
Listing Agreement
Buyer Proof of Funds
Contract (purchase and sale agreement)
Authorization to speak with listing broker

What are the benefits of a VA Compromise Sale?
The borrower will not have to pay back the shortfall (if there was no fraud, misrepresentation or bad faith when the loan was obtained)
There is currently a $1500 relocation bonus paid to the VA borrower at closing

What are the negatives of a VA Compromise Sale?
You cannot obtain another VA mortgage loan unless you pay back the government loss
Your credit will be reported as "Paid in full for less than the full balance"
You may owe federal taxes depending on current tax law and your total financial picture

One of the key differences between VA Compromise Sale program and traditional short sales is that you must have a hardship. Nowadays, so-called “strategic” short sales are more common, where the borrower no longer wants the property, has no financial hardship, so participates in the loss by contributing cash or agrees to a promissory note to obtain a short sale. This is not the case with a VA mortgage. You must be at risk of default, and not have your own cash available to contribute.

More questions about VA Compromise Sale? Email me at itswendy@rulnickrealty.com

This home in Lighthouse Pointe, Navarre Florida, was just approved for a VA Compromise Sale. A VA Compromise Sale is similar to a short sale, but is used for loans guaranteed by the Veterans Administration. Since the Emerald Coast is home to Eglin Air Force Base, Hurlburt Field, Whiting Field and Duke Field, many local sellers have VA mortgages and may be able to use the program if they are unable to sell their homes to cover their mortgage balance.

One of the key differences between a typical short sale and VA Compromise Sale is the disposition of the deficiency. According to the VA website, " If your loan closed on or after January 1,1990, you will owe the Government in the event of a default only if there was fraud, misrepresentation, or bad faith on your part." So, in most cases, you will not have to pay back the difference between the net proceeds and your outstanding balance.

Another difference in the VA Compromise program is the length of time the VA appraisal stands. With most short sales, the servicing lender will order a valuation (either an appraisal or broker price opinion), that will be valid for two to three months. In the VA Compromise program, the valuation, conducted by a VA certified appraiser, is valid for six months. That is not always good, especially in a declining market. So if a sales contract does not get approved, the targeted price will have to stand, and not be adjusted even if competing properties are priced lower.

This home in Lighthouse Pointe had a Bank of America mortgage. VA delegates the loan servicers to handle the compromise claims for them, so there is no need for the homeowner to contact the VA directly. This approval only took 30 days!

If you need to sell your Navarre Florida home as a short sale, HAP or VA Compromise Sale, contact an experienced Navarre short sale agent.

It's Wendy!

This home in Tom King Estates, Navarre Florida, has been approved for short sale.

The senior lien, Wells Fargo, had a balance of $230,000

The junior lien, HSBC, had a $65,000 balance.

The sale price was about $185,000, so there were not enough funds to fully pay the senior lien. In these short sale scenarios, the senior lien will normally pay an amount to satisfy the junior lien. The "junior" might only release its lien, not waive the deficiency.

Initially, HSBC requested $6000 to approve the short sale. Wells Fargo, the senior lien, would only pay them $3700. HSBC asked the seller to bring $1500 in additional funds. The seller agreed, and the deficiency was waived by both Wells Fargo and HSBC.

If you need to avoid foreclosure by short sale for your home in Navarre, Florida, contact an experienced Navarre short sale agent

This townhome on Majestic Boulevard, Hidden Bay, Navarre FL was just approved as a short sale!

Details:

Senior Lien: Bank of America

Balance: $190,000

Junior Lien: Bank of America

Balance: $30,000

Sale Price: $105,000 appr

Time for approval: 39 days!

This short sale was processed through the Bank of America Equator system. We uploaded all financial documents for the seller. Bank of America previously required sellers to upload their own financials, such as bank statements, tax returns and pay stubs. Many sellers had problems with the Bank of America Equator software. As you can see, this change in policy is helping speed up short sale approval times!

If you need to sell your Navarre Florida property to avoid foreclosure, be sure to consult an attorney and an experienced Navarre Florida short sale agent.

Regions Mortgage has approved a short sale in Holley by the Sea, Navarre, Florida. Regions has branches primarily in the South and Midwest. I have found they like to negotiate back and forth on short sales, more so than other lenders. They normally want a cash contribution, promissory note, or both, and prefer to move their liens onto other of the borrower's real estate assets. Regions has gotten some press lately as one of the few lenders who is yet to repay TARP funds to the U.S. Treasury, as well as federal charges against its subsidiary, Morgan Keegan & Company. Regions is fighting those charges.

They did recently approve this short sale in Navarre, Florida.

Property: Single family home in Holley by the Sea

Mortgage: Regions - balance about $210,000

Offer: about $150,000

Cash Contribution: $22,000

Notes: Remainder of balance moved as collateral to another property

Regions short sales are not always the easiest, but they can be accomplished. If you need to avoid foreclosure, and do a Holley by the Sea, Navarre, Florida short sale, consider hiring an experienced Navarre short sale agent.

It's Wendy!