VA Short Sales

Interested in selling your house as a short-sale?  Email Kathy Torline  KTorline@msn.com or call 719-287-1049

Colorado Springs has a high military population with both active duty and retired personnel.  Fort Carson Army Base, the Air Force Academy, Peterson AFB & Schriever AFB, Cheyenne Mountain AFS and NORAD. are all located in the Colorado Springs Area.

The area is continuing to see 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. 

According to the VA web site:  “When a homeowner receives an offer based on current market value that is lower than the total amount of the loan payoff, the homeowner can ask VA to approve a compromise sale. VA will review the situation with the mortgage company and if approved, pay the difference between the mortgage balance and the proceeds of sale.

Sometimes the mortgage company can approve the sale on behalf of VA through our Servicer Loss Mitigation Program. In fact, a majority of the mortgage companies now have a Loss Mitigation  Department authorized by VA to process VA compromise sales.”

In order to be considered for a Compromise Sale, several factors must be considered as well as there are several steps to complete:

  1. The property must be sold at market value
  2. Closing costs must be reasonable and customary
  3. There must be a financial hardship on part of the seller
  4. There must be no second liens or other liens on the property
  5. Fill out a financial status report form provided by your lender or the VA
  6. Complete a letter of request.Complete a Compromise Agreement Sale Application. You can get this form from the VA or the approved lender
  7. The sales contract should be be “contingent and/or subject to the approval of a VA compromise sale”
  8. The lender should be contacted to see if they are an approved VA Service Loss Mitigation lender and/or contact the VA regional office servicing the loan directly.

The VA Web site also has a very informative page called What can I do if I have trouble making my payments. 

For more information, contact your VA Regional Loan Center.

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To find out more information about Colorado Springs and Short Sales, Call ……
Kathy (719-287-1049)   KTorline@msn.com