How Will a VA Compromise Sale Affect My Credit?

If you are a service member or Veteran near Hurlburt Field or Eglin Air Force Base, you may be considering a VA Compromise sale if you have a VA loan. A compromise sale (or offer in compromise) is when the Veterans Administration approves the sale of your home when your mortgage payoff is greater than the sale price, and there is not enough to pay back your VA entitlement. You must have a hardship and need to sell.
Two questions always come up when I help with VA Compromise Sales:
1. How will a VA Compromise Sale affect my credit?
To get a direct answer, I called the Veterans Affairs Regional Office in St. Petersburg (telephone 1-888-611-5916), which covers the state of Florida. They told me VA Compromise sale is reflected as settled for less on credit reports. Settled for less is a common reporting for short sales, as well. The exact number of points that your credit will be affected depends on your complete credit picture. Remember, if you missed payments, that will also show up on your credit report.
2. Will I be able to get a VA loan again if I do a Compromise Sale?
Yes, if you pay back the entitlement that was not paid back to the VA at the sale. Specifically, the Veterans Administration says: 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 homeowners entitlement used to guaranty this loan will remain tied up until VA is reimbursed in full.
In fact, I am working with a Veteran now who re-paid his entitlement after a compromise sale, in order to get a VA loan again, because the rate and terms were more favorable. But remember, there are other types of mortgages that will be available to you, if you are unable to seek another VA loan.
If you are a service member or Veteran near Eglin AFB, Hurlburt Field, Duke Field or Whiting Field, and think you might need to do a VA Compromise Sale, short sale or use the HAP program, call me at 850-650-7883. I can help.

Its Wendy
Wendy Rulnick, Broker Rulnick Realty, Inc.
Call toll-free 1-877-ITS-WNDY (1-877-487-9639) or local 850-650-7883 ext 204
itswendy@rulnickrealty.com
Read Wendy's Real Estate Blog

Call Wendy Rulnick, Broker, to list and sell your home or condo on the Emerald Coast of Florida in Walton, Okaloosa and Santa Rosa County- Destin, Santa Rosa Beach, Fort Walton Beach, Niceville, Bluewater Bay, Navarre, Seagrove Beach, Watercolor, Sandestin, Seaside, Crestview, Rosemary Beach, Mary Esther, Shalimar, Eglin AFB, Hurlburt Field. Wendy is a short sale and pre-foreclosure specialist and has been featured in Kiplinger Personal Finance Magazine and Florida Realtor Magazine.

I Need a Broker Price Opinion- This is a Comparative Market Analysis!

I recently got a Mary Esther Florida short sale approved by HSBC, who always provide interesting twists to their short sales. Here is the story:
Property: Owner occupied home in Mary Esther Florida

Market Value: $130,000

Senior Lien: Wells Fargo - VA loan - $190,000

Junior Lien: HSBC - $40,000

Getting the VA compromise sale approved by Wells Fargo was the easy part of this short sale. Getting approval from HSBC, the junior lien, was a different story. HSBC had farmed out its collection efforts to a company called Professional Recovery Services. After months of waiting for a response on short sale approval, PRS finally claimed that HSBC would not allow a short sale because the borrower had filed for bankruptcy a few years ago. I was asked to provide documentation that the HSBC lien was not included in the bankruptcy. I did, but PRS said HSBC still refused to look at the short sale, claiming "a bankruptcy is a bankruptcy".
Undeterred, I contacted HSBC directly, emailing several representatives until I was directed to a negotiator in the bankruptcy department. Apparently, I had contacted the right person, as he said he would help with the short sale approval. First, though, he needed me to provide a Broker Price Opinion of the property's value. I used my Multiple Listing Service to do a detailed market analysis and faxed in the form. The HSBC negotiator, although polite enough in scripted English, had a problem with my document.
"This is not a Broker Price Opinion" he said, "It says Comparative Market Analysis".
"It's the same thing. A comparative market analysis is the same thing as a BPO", I told him incredulously, "What do you want me to do, re-label it?"
PAUSE
"It looks like a CMA. I need a Broker Price Opinion done by a Broker” He choked out.
"I am a Broker. Fine, I will re-label the form with 'BPO' and fax it back to you."
"Thank you, it has been my pleasure speaking with you", he read from his script.
I re-entered my data onto another form, labeled it 'Broker Price Opinion',and faxed it back to HSBC. The next day I called in.
"You are approved. It has been my pleasure working with you",

It's Wendy!

Wendy Rulnick, Broker, CRP, CRS, GRI, ABR Rulnick Realty, Inc.

Destin FL Real Estate

Destin Short Sales & Pre Foreclosure Help.

Read Wendy's Destin Real Estate Blog

http://www.shortsalesuperstars.com/ for agents

Call toll-free 1-877-ITS-WNDY (1-877-487-9639) or local 850-650-7883 ext 204

Email Wendy: itswendy@rulnickrealty.com

Wendy is a short sale and pre-foreclosure specialist and has been featured in "Kiplinger Personal Finance Magazine" and "Florida Realtor Magazine". Call Wendy Rulnick, Broker/Owner,to list and sell your home or condo on the Emerald Coast of Florida in Walton, Okaloosa and Santa Rosa County- Destin, Santa Rosa Beach, Fort Walton Beach, Niceville, Bluewater Bay, Navarre, Seagrove Beach, Watercolor, Sandestin, Seaside, Crestview, Rosemary Beach, Mary Esther, Shalimar, Eglin AFB, Hurlburt Field.

Bluewater Bay Home for Sale - Short Sale

VA Compromise Sale- Short Sale - 468 Barbados Way, Niceville Florida 32578

This Bluewater Bay home in Caribbean Village will delight! Fabulous oversized lot- fenced at end of cul-de-sac. Enormous pavered patio, amazing screened porch. Fanciful swing under pergola. Newer well-pump,sprinkler system with drip irrigation for a gardener's heaven. Exterior painted 2008, interior recent tasteful paint. Master bedroom opens to screened porch, master bath with oversized, sit-down shower. Light creamy, tiled kitchen. Cathedralled living room with fireplace. Real wood blinds. Front windows tinted for energy-savings. Bluewater Bay offers amenities and clubs such as tennis, golf, pools, bayfront marina, playgrounds and more. Niceville Florida location provides easy access to Mid-Bay Bridge to Destin Florida beaches, Gulf of Mexico and shopping at Destin Commons. Great for commuters to Eglin Air Force Base, too! Offered at $229,900.

VA Short Sale Guidelines

The Emerald Coast of Florida has a high military population with both active duty and retired air force personnel. Eglin Air Force Base is located in Fort Walton Beach, and Hurlburt Field is in Navarre, Florida. Duke Field and NAS Whiting Field are nearby. We will be seeing an increase in short sales for GI borrowers when they must relocate during their PCS moves (permanent change of station). VA Short Sales are called "Offers in Compromise", "Compromise Claims" or "Compromise Sales". The VA may accept a Compromise Sale if the cost to the VA is determined to be less than that of foreclosure.

The VA website says: "If the borrower is unable to sell the property for an amount that is greater than or equal to what he/she owes on the loan, including closing costs, VA may pay a "compromise claim" for the difference in order to allow the private sale to go through. The borrower can sell the property to a buyer who gets his/her own financing or to a buyer who wants to assume the loan. However, with a compromise assumption, the lender does have to agree to have the amount of its guaranty reduced by the amount of the claim payment. In order to be considered for a compromise sale, several factors must be considered."

VA Compromise Sale Factors:
1. You may only sell the home for fair market value.
2. The closing costs must be "reasonable and customary".
3. You must have a valid financial hardship such as loss of income, relocation, death of breadwinner, etc.
4. There should not be a second mortgage on your property, unless it is "insignificant". If so, you might ask the junior lienholder to release the lien and convert it to a personal note.
5. You should ensure your sales contract is "contingent and/or subject to the approval of a VA compromise sale."

If you have a VA loan, and need to do a "Short Sale" or "Compromise Sale", here is what you must do to begin the process:
1. Contact you lender to see if they are an approved VA Servicer Loss Mitigation lender and/or contact the VA regional office servicing your loan directly.
2. Fill out a financial status report form provided by your lender or the VA.
3. Complete a letter of request.
4. Complete a Compromise Agreement Sale Application. You can get this form from the VA or the approved lender.

Final Important Points:
1. Your lender does not have to agree to a Compromise Sale.
2. For VA loans originated on or before December 31, 1989, you might have to sign a promissory note at closing agreeing to repay VA for the deficiency remaining after the property is sold.
3. An experienced Short Sale Realtor should guide you through the sales process, help you determine fair market value and prepare your package for submission to your lender or the VA.
For more information, contact your VA Regional Loan Center.

It's Wendy!
Wendy Rulnick, Broker, CRP, CRS, GRI, ABR Rulnick Realty, Inc.

Search Destin Florida real estate and vicinity.
Short Sale Pre Foreclosure Help.

Call toll-free 1-877-ITS-WNDY (1-877-487-9639) or local 850-650-7883 ext 204
Email itswendy@rulnickrealty.com

Wendy Rulnick specializes in real estate sales, short sales, traditional sales on Emerald Coast of Florida: Destin Florida real estate, Santa Rosa Beach, Fort Walton Beach, Niceville, Bluewater Bay, Navarre, Seagrove Beach, Watercolor, Sandestin, Seaside, Dune Allen, Blue Mountain Beach, Freeport, Rosemary Beach, Mary Esther, Shalimar, Eglin AFB, Hurlburt Field. Wendy Rulnick, Broker and Realtor, has been selling real estate for almost 20 years. She has won numerous awards, including the coveted ADDY for advertising design. An expert marketer of real estate listings, she also negotiates successfully to her buyers' and sellers' advantage. She is supported by a team of top buyer specialists. Wendy lists and sells homes, condos and townhomes in Destin Fl and the surrounding areas. She was ranked in the top ½ percent of all Realtors on the Emerald Coast of Florida in 2008 for resale listings sold.

All Rights Reserved. "VA Short Sale Guidelines" Contact Wendy Rulnick regarding Destin Florida real estate and vicinity. Copyright © 2008 by Wendy Rulnick.This site, Wendy Rulnick or Rulnick Realty, Inc. is not providing legal or tax advice. The information provided is for educational and informational purposes only. It is recommended that sellers considering a short sale should consult an independent legal and tax advisor for more information.

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