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.