Currently I’m working with a number of families in Northern Virginia who are qualified for the Department of Defense Homeowners Assistance Program (HAP) but there is another option for military families who have received orders and are upside down on their home value.
If you have a VA Loan you may be eligible for a VA Compromise Sale. In our region of Northern Virginia the VA Regional Office which will provide you with the latest updates is the Roanoke office. The VA Compromise sale does have several factors that are important to remember:
• The property must be sold for fair market value.
• The closing costs must be reasonable and customary
•The compromise sale must be less costly for the Government than foreclosure
• There must be a financial hardship on the part of the seller
• On loans that originated on or before December 31, 1989, the seller must be willing to sign a promissory note
• There must be no second liens or other liens (unless the amount is insignificant).
• The seller must first obtain a sales contract in order to be considered for the program.
To protect the seller’s interest, the seller should make the sales contract contingent and/or subject to the approval of a VA compromise sale.
There is an extensive list of VA approved list of Loss Mitigation Servicers available on the VA site. A VA Compromise sale does require that the VA approve the HUD-1 be reviewed and approved by the VA prior to settlement so making sure the buyers documents are in order at least 48 hours in advance is a must.
If you are stationed at Fort Belvoir, the Pentagon, Quantico or any of the Military District of Washington installations give Cindy Jones a call at 703-346-2213. Let’s see if a VA Compromise Sale or the Department of Defense HAP program might help you with your home sale.