Always Check The Source Of The Information You Read

One thing about social media is when inaccurate information surfaces it gets spread at lightening speed.  As a Realtor® when I see information that is wrong my hot button gets pushed big time.

The biggie I ran across this week was a blog post stating a military service member who completed VA Compromise sale would not only lose their a VA Home Loan entitlement but all of their VA benefits.  Hold on folks, nothing could be further from the truth.

A veteran or military member who completes a VA Compromise sale will lose a portion of their future VA Loan Benefits.  Per the VA:  “Should VA agree to pay the difference between the sales proceeds and the total debt to complete the compromise sale process, the portion of the homeowner’s entitlement used to guaranty his loan will remain tied up until VA is reimbursed in full.”  This is the only benefit a veteran or active duty service member will lose.  It’s not their retirement pay, their medical benefits or any other benefit they are entitled to by law.  A sweeping statement that states a they will lose their benefits forever is scary and wrong.

I’ve completed two sales this year for military service members who had previous VA Compromise Sales.  We worked with a local VA lender who understood exactly what they needed to do to calculate their remaining entitlement.  They both are in new homes in Northern Virginia for the holidays.

It’s important for all of us, myself included, to make sure we do as much fact checking as possible before we post anything on the internet.  The very same people we are trying to help could be hurt by wrong information.

 


2 thoughts on “Always Check The Source Of The Information You Read

  1. Good evening Mrs Jones,
    I read your post. Maybe, you can guide me in the right direction.
    I am active duty Navy. I used to work at Yorktown Weapons Station. I bought a house in Yorktown VA, in 2009. The Navy allowed me to choose 5 duty stations when it is time to move. I choose Norfolk and Portsmouth, as 1st and 2nd choice since those were the only ones with openings in my field and geographically located in proximity where I live in the Hamptons Road area. In 2012 I was ordered to report to the Navy Yard in D.C. I still do not have any explanation why the government wanted to spend thousands on my move. well, that decision on the Navy’s part forced me to put my house on short sale (compromise sale)
    The extenuating circumstances that led to the short sale were:
    1. Twofold increase in my mortgage payments due to relocation. I rented a house in NoVA.
    2. HOA’s refusal to allow me rent the property.
    Now I was trying to buy a house and VA denied me COE unless I put 50% down.
    I don’t think this is right by their own guidelines. That states “although the veteran’s debt was waived by VA, the Government still suffered a loss on the loan. The law does not permit the used portion of the veteran’s eligibility to be restored until the loss has been repaid in full.”
    I am in the military, I will go wherever my service is needed. They didn’t need me in downtown DC pushing papers!!
    Sorry, for unloading my frustrations, it is just a desperate attempt to get assistance.
    Good night!

  2. Alemu-as part of a VA compromise sale a service member does lose a portion of their VA eligibility. Depending on where you are buying again it could limit what you can buy but not being able to buy. Are you working with a local VA lender that really knows the ins and outs of your eligibility and the local VA loan limits? I find some lenders, even national ones we would thing understood the numbers, don’t always. Though it is to late, any HOA that does not allow a service member to rent their property with orders in hand is likely has an uphill legal battle to fight.

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