Florida short sales with VA
Jacksonville, Florida is home to two naval bases (NAS JAX and Mayport) and a large military population, and many home sales in the city are funded with VA loans. The VA (Veterans Administration) 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.
Unfortunately sometimes those with VA loans need to sell, and due to the nature of the VA loan program, often there is just not a lot of equity in the home especially 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!
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. The VA short sale program has remained unchanged for decades.
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.
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.
A VA SHORT SALE MAY BE AN OPTION IF YOU:
Have been transferred by the military and need to sell, but lack the equity.
Are facing Florida foreclosure, or wish to stop the foreclosure process.
Owe more than your home is worth and lack the funds to make up the difference.
Are falling behind with your mortgage payments.
Are facing a current or future financial hardship such as divorce, retirement, layoff, employment relocation.
Have had other workout options such as a forbearance or loan modification declined.
Are considering just walking away but want to avoid the consequences of foreclosure and/or a deficiency judgment.
If these describe you situation, a VA Compromise Sale may be right for you. Short sales are complex and require an experienced short sale specialist. My team and I have been specializing in selling short for over a decade and have helped hundreds of sellers walk away from their upside down homes debt-free!
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
Last Updated on April 7, 2025 by Minna Reid