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VA Loans, Foreclosure Avoidance, and Relocation Assistance For Nothern Virginia Service Members

This is good information for military service members in Nothern Virginia to know.  If you have a VA mortgage and need to sell your home due to PCS orders or family hardship make sure your lender understands that you have a VA Mortgage.  Many lenders have a separate group in place to handle processing of VA Compromise Sales. 

 

No VA borrower wants to think losing their home is a possibility, but in some cases it’s unavoidable due to personal financial issues, job loss, medical issues or related problems. Foreclosure is a difficult process–it changes credit ratings, requires a waiting period before the VA borrower is eligible to try to buy a home again, and can lower the property value of the home being foreclosed upon.

But there are alternatives to foreclosure–even though some of those alternatives still mean the buyer must give up the home purchased with a VA guaranteed loan, they are preferable to foreclosure.

The Department of Veterans Affairs prefers to offer help to homeowners and financial incentives to lenders to encourage all possible alternatives to entering foreclosure procedures. According to the VA official site, “For over 15 years, VA has paid incentives to servicers successfully completing alternatives to foreclosure, and beginning in 2008, VA started paying incentives to servicers for successful repayment plans, forbearance agreements, and loan modifications.”

Recent developments have given homeowners and loan officers more options when it comes to processing a VA short sale or deed-in-lieu of foreclosure. Homeowners can now take advantage of relocation assistance when involved in a VA short sale or deed-in-lieu.

Recent changes to VA regulations state, “Effective immediately, VA is authorizing servicers to advance $1,500 in relocation assistance to borrower occupants who complete a short sale with a VA compromise claim or who execute a Deed-In-Lieu”.

The VA rules also point out that this relocation assistance is to be listed as a reimbursable expense on the bank’s claim. Regulations prohibit the buyer from getting cash proceeds from a short sale, but the VA does not consider the relocation assistance money to be part of the cash proceeds of the sale.

Relocation assistance is helpful in many ways, and not just to the homeowner. Deed-in-lieu and short sale agreements require the home to be presented in good condition (“broom clean” is the term used in the VA lender’s handbook) and under these arrangements the home doesn’t sit vacant for extended periods of time, subject to vandalism and other issues that can lower property values. The former owner gets some financial help in the process and avoids having a foreclosure listed in his or her credit history.

                                   Real People*Real Lives*Real Estate

If you are interested in learning more about the Northern Virginia Real Estate market including Alexandria, Arlington, Fairfax and Prince William Counties give Cindy Jones and Integrity Real Estate Group a call at 703-346-2213.

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. 

Military Relocation Professional


Check out www.varealestatetalk.com and www.cjrealtygroup.com for more information.

Integrity Real Estate Group
 
Real People*Real Life*Real Estate

Licensed in the Commonwealth of Virginia



 

 

Comment balloon 1 commentCindy Jones • August 11 2011 10:01AM

Comments

Cindythanks for re-blogging this as I missed the original post.  Great info to get out their to our service men and woman. 
Pamela

Posted by Lee & Pamela St. Peter, Making Connections to Success in Real Estate (Berkshire Hathaway HomeServices YSU Realty: (919) 645-2522) almost 7 years ago

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