March 10, 2020

Florida Short Sales with VA – The VA Compromise Sale Process Explained!

VA Compromise sale

The VA offers a lot of great benefits like the VA mortgage - a 100% loan program with low interest rates and fees. Unfortunately sometimes those with VA loans need to sell, and often there is just not a lot of equity in the home. If you have a VA loan and owe more than your home is worth and need to sell anyway -VA does offer a solution! 


While all short sales all follow a similar process, The VA Compromise Sale adds their own specific guidelines. However, these short sales are quite predictable and reasonably quick. 

realtor with short sale sign



The seller must have a financial hardship.


The compromise sale must be less costly for the Government than foreclosure.


The property must be sold for fair market value.


There must be no second mortgages or other liens (unless the amount is insignificant). In second lien situations, the buyer or seller may have to pay out of pocket to resolve the second lien. 


The seller must first obtain a sales contract in order to be considered for the program.

The most notable difference between VA most other short sales is how the remaining debt is handled. While in most short sales the deficiency balance is forgiven and then becomes a taxable event to the homeowner, VA neither completely forgives the balance or requires repayment. Instead, 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 homeowner’s entitlement used to guaranty this loan will remain tied up until VA is reimbursed in full.

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!


Short Seller

Last Updated on March 10, 2020 by Minna Reid

Minna Reid

Minna Reid is a Broker Associate at Killebrew & Company Realty Inc, serving Jacksonville, Florida.

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