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Veterans Administration Compromise Sale Program
Homeowners that have a VA loan and cannot make the loan payments, or are required to sell in a down market because of military transfer and will not have the equity to cover the cost of the remaining VA mortgage and/or related closing costs, can use the VA Compromise Sale Program. It is expensive for a lender to foreclose on a property, and it ruins the credit of the seller. So this is a good alternative for both parties. If a compromise contract is accepted, it may release you from any further liability or in some instances may be required to reimburse the VA for some or all of the loss. The VA can consider a compromise sale when one of the following financial hardships exist:
- Veteran/seller's employer requires he/she transfers;
- Decrease in income;
- Major medical expense;
- Death of principle wage earner, spouse or family member.
There are approved lenders that know the program and can step you through the process. I have provided the Roanoke Regional VA Office link, which covers the states of Virginia, Maryland, West Virginia, and Kentucky. This link describes the Compromise Loan Program and has the list of approved lenders. VA Compromise Loan Program If you have trouble finding a lender that can help you, please contact us at 540-420-1013 and we will assist you. I think you will find the VA Regional website helpful. It provides examples of the forms, letters, etc that are involved with the transaction.
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