Currently I'm working with a number of families in Northern Virginia who are qualified for the Department of Defense Homeowners Assistance Program (HAP) but there is another option for military families who have received orders and are upside down on their home value.
If you have a VA Loan you may be eligible for a VA Compromise Sale. In our region of Northern Virginia the VA Regional Office which will provide you with the latest updates is the Roanoke office. The VA Compromise sale does have several factors that are important to remember:
• The property must be sold for fair market value.
• The closing costs must be reasonable and customary
• The compromise sale must be less costly for the Government than foreclosure
• There must be a financial hardship on the part of the seller
• On loans that originated on or before December 31, 1989, the seller must be willing to sign a promissory note
• There must be no second liens or other liens (unless the amount is insignificant).
• The seller must first obtain a sales contract in order to be considered for the program.
To protect the seller's interest, the seller should make the sales contract contingent and/or subject to the approval of a VA compromise sale.
VA Compromise Sale Information Packet
There is an extensive list of VA approved list of Loss Mitigation Servicers available on the VA site. A VA Compromise sale does require that the VA approve the HUD-1 be reviewed and approved by the VA prior to settlement so making sure the buyers documents are in order at least 48 hours in advance is a must.
If you are stationed at Fort Belvoir, the Pentagon, Quantico or any of the Military District of Washington installations give Cindy Jones a call at 703-346-2213. Let's see if a VA Compromise Sale or the Department of Defense HAP program might help you with your home sale.
No Hassle-No Pressure-Just Straight Talk About The Northern Virginia Real Estate Market
Military Relocation Specialist serving military families relocating to and from the Pentagon, Fort Belvoir, Quantico MCB and all of the Military District of Washington installations.
Licensed in Virginia
I had a seller use this. They had to come up with the money based on a percentage of the difference.
It was sad, they will eventually get reimbursed but combat folks and survivors are first.
Regardless they were able to work it out. And much easier than a normal "short sale."
Very useful information. We have alot of Veterans in the Tampa Bay area. We had not run into this yet, but sure we will.
Cindy, this is great information. I like it so much I reblogged it for my area. Thanks for posting.
Hi Cindy, Good post. Thanks for sharing.
Best - Sash
Hi Cindy
Your post is very informative and helpful.
Good luck and success.
Lou Ludwig
Missy-there are two different programs going on right now. HAP and the VA Compromise Sale. I have three HAP listings under contract waiting for approval and getting ready to put another one on the market. They are slow on getting the guidelines out. Meanwhile families are moving and stuck with both a mortgage and rent at a new location.
Dick and Dixie-one of my HAP clients just moved to Tampa. We need to let folks know that there are options to ruining their credit with a short sale.
June-thanks for the re-blog. The more we get the word out on the programs available the better.
Sash-thanks for dropping by.
Lou-thank you. I try to get the word out about military programs after I've done my research.
Cindy: So is a VA Compromise Sale sort of like VA's equivalent to a short sale? Sort of seems that way reading the post.
Chris Ann-yes that would be the simpliest way to describe it. They seller may have to sign a promissory note for the difference and it limits their future eligibility for a VA loan by reducing the amount they can receive but they don't have to ruin their credit!