First a deployment and then PCS orders meant my sellers needed to make a move. Unfortunately they had missed the deadline to qualify for the Department of Defense Homeowners Assistance Program (HAP) so it looked as if a short sale was in their future. As we started talking about the process I learned they had a VA loan on their home which meant there was another alternative.
Though a VA Compromise sale is similar to a short sale, the lender can file a claim with VA for the difference between the proceeds and the payoff amount, after the transaction closes. This makes it easier for them to approve the sale since the loan is guaranteed by the VA. Fortunately the lender had a negotiator specifically assigned to work with military families and the new buyer was also using a VA loan from the same lender.
After putting together the package of information required by the lender, the home in the River Oaks neighborhood in Prince William County went on the market. The property generated multiple offers and was under contract in 10 days. It took a bit of prodding with the lender but after getting connected to their VA loan servicer specialist the process smoothed out and the property settled in August 2011.
Though it is never easy to have to deal with the loss of value of a home fortunately for active duty military, veterans and qualifying spouses with a VA loan there is an option. If you are a military family in Northern Virginia and are upside down on your mortgage give Cindy Jones and CJ Realty Group a call at 703-346-2213 to talk about your options. We have a proven record of success with DoD HAP sales and VA Compromise sales. Let’s talk and see how we can help you make your transition to a new duty station a smooth one.