There are many factors involved and many steps that will need to be taken to accomplish a successful VA short sale.
If your mortgage is guaranteed by the Department of Veterans Affairs, and you are unable to sell it for the amount you owe on the loan, the VA may allow you to perform a short sale, or a “compromise sale.” Basic requirements include proof that you are experiencing a hardship that prohibits you from making your mortgage payments and that the house has no second liens.
Contact your VA-approved “loss mitigation” lender. You can determine your lender’s status by checking the list at the VA website. If your lender is not approved, contact the VA directly. Let the lender know that you are unable to make your mortgage payments and will be selling the home upon VA approval of a compromise, or short, sale.
Hire a real estate agent with experience handling short sales. Ask your lender for a recommendation or attend open houses and speak with the agent on duty about his experience. Another way to find an agent is to call a local real estate brokerage and ask to speak with the broker. Ask her whom she has on staff experienced in either short sales or, ideally, VA compromise sales.
Ask your agent to compile a market analysis of the house’s fair market value. With this information, you can price the house appropriately.
Sign the listing agreement with the agent and include a clause that protects you from having to pay a commission should the VA refuse your request for a compromise sale.
Accept offers to purchase at fair market value only. The VA will not entertain offers for less. Ask your agent to counter the offer, making it contingent on approval from the VA for a compromise sale.
Fill out and sign a financial statement. You can get a financial statement form from your lender or download one at the VA website.
Complete a letter requesting consideration for a compromise sale and a compromise agreement sale application. This can be obtained from your lender, if it is VA-approved. If not, obtain these forms from the VA website. Your agent will package these documents and the purchase agreement and send them to your approved lender or to the VA.
Wait for approval from the VA. The processing time varies, depending on the region and how backed up the lenders and the VA may be.
Of course your source to start and complete a successful short sale starts with Kurt Galitski- Give him a call today- 714-957-6677