What is a VA Compromise Sale?
A VA Compromise Sale (commonly called a VA short sale) may allow a Florida homeowner with a VA-guaranteed mortgage to sell a home for less than the total amount owed when a traditional sale isn't possible.
If the transaction qualifies, VA may pay a compromise claim to the mortgage servicer for an eligible loss so the sale can be completed. This can allow a Veteran or service-member to sell an underwater home and avoid foreclosure.
Are you a veteran or active military homeowner in Florida whose VA loan home is underwater and you need to sell? The VA Compromise sale may be the answer!
The U.S. Department of Veterans Affairs offers a lot of great benefits like the VA mortgage - a 100% loan program with low interest rates and fees, and you don't need great credit or income to qualify. Florida is home to a large military population, and many local home sales in the city are funded with VA loans.
Due to the nature of the VA loan program, when those with VA loans need to sell, sometimes there is just not enough equity in the home to sell traditionally. This is especially likely if you purchased your home near the peak of the market. If you have a VA loan and owe more than your home is worth and need to sell anyway -VA does offer a solution!
THE DEPARTMENT OF VETERANS AFFAIRS SHORT SALE (COMPROMISE SALE) PROGRAM!
Will you qualify for a VA Compromise sale? Find out now!
While all short sales follow a similar process, The VA Compromise Sale adds their own specific guidelines. However, short sales with VA are quite predictable and reasonably quick.
Who May Qualify for a VA Compromise Sale?
IN ORDER TO QUALIFY FOR A VA COMPROMISE SALE:
The seller must have a financial hardship, or have been relocated elsewhere due to military orders.
The short sale must be less costly for the Government than foreclosure.
The property must be sold for fair market value.
Second mortgages or other liens are challenging in VA short sales as VA does not allow payments to junior lienholders to be paid out of the proceeds (unless the amount is insignificant). In second lien situations, the buyer or seller may have to pay out of pocket to resolve junior liens.
The seller must first obtain a sales contract in order to be considered for the program.
What Happens to the Unpaid Mortgage Balance After a VA Short Sale?
One notable difference between a VA Compromise Sale and many other short sales is how the remaining mortgage debt and VA guaranty loss are handled.
What Happens to My VA Entitlement After a Short Sale?
A VA compromise claim can affect how much VA home-loan entitlement you have available after the short sale. That does not necessarily mean VA will require you to repay the loss as a personal debt. For most modern VA loans, the issue is generally the effect of the VA loss on future entitlement rather than VA pursuing the Veteran for repayment of the guaranty loss.
How Does the VA Short Sale Process Work?
List the property and obtain a purchase contract
Since VA will not consider a short sale until a buyer is in place, the first step is to get the property listed and secure a buyer.
Determine an approach to resolve junior liens or other title issues
If other liens exist, VA will want to see a resolution to these prior to moving forward with a property valuation.
Submit the VA Compromise Sale package to the lender
The lender will order the required property valuation/appraisal
VA/servicer reviews the proposed sale and projected loss
Negotiations will usually follow but once title issues have been addressed and the sale meets VA required net proceeds and terms, the Compromise Sale will be approved.
Receive Compromise Sale approval and close
Once the short sale approval letter is issued, all parties will move forward to close.
This past summer we had to do something we never expected and that was to short sale our home of 15 years. Minna answered our phone call and immediately assured us we were not alone in this and she would be there every step of the way. At no time did she ever make us feel less then she assured us this was more common then we knew and she would do everything to get us a sale before the inevitable foreclosure due to loss of income. She and her staff were amazing once we vacated and moved 700 miles away she was able to locate a buyer in just over 3 months and hold the closing with 4 months of the listing date. They were there every time we had a question or to explain the next step. She and her staff are amazing and I would recommend them to anyone looking for a realtor. Words cannot express our gratitude!
Elizabeth
Short Seller
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Last Updated on September 9, 2026 by Minna Reid
