This is a short sale approval letter for a VA loan for a veteran client who had purchased a home at the peak market price and then had a job transfer out of state and could only sell for less than she and her husband owed.
There are several different short sale programs for veterans. One such program is the Compromise Sale program offered by the Department of Veterans Affairs. In this program the government pays a “compromise claim” for the difference between what the veteran owes on the loan and closing costs and what the house sold for.
Among the situations that are considered hardships is:
If the veteran homeowner does not qualify under the compromise program or the lender is not a participant they can still very possibly qualify for a different type of short sale program, HAFA or traditional.
In this approval letter situation the veteran owner met all of the necessary requirements but the lender was not a participant in the compromise nor in the HAFA program but we were able to get the short sale approved and their mortgage obligations released under a traditional short sale approval agreement with the lender.
The paperwork was similar to any other short sale but had to be approved by both the lender and the VA administration. The Veterans Administration sent a VA certified appraiser to appraise the home prior to granting us the short sale approval, the wait for the results of that approval took about two months but otherwise the short sale was simple to attain.
The owner will be allowed to purchase another home using her VA loan in as little as one year. The rules regarding waiting periods to repurchase a home after a short sale with a VA loan varies by situation and can change. However, I was already quoted, one year waiting period after a short sale caused by a job relocation by a reputable VA lender.
If you have a VA loan and would like information about your loan modification and short sale options and the different types of programs that are available for veterans and families of veterans please contact me.