The Department of Veteran Affairs of the US Federal Government is the department, which looks after the military benefits systems in America. The department is responsible for looking after the welfare of the active military personnel, veterans, their families as well as the survivors.
California is one of the biggest states in America with a huge population of veterans. In fact, with a staggering 1,851,470 veterans, the Golden State of California has the largest population of veterans in the United States. There are plenty of reasons why this state is a favorite place among veterans. For one thing, California has a large number of important military establishments which include Camp Pendleton Marine Corps Base, Edwards Air Force Base, Fort Irwin Army Base as well as the famed MCAS Miramar Marine Corps Base at San Diego. California also has a pleasant weather all the year round, which makes it one of the havens for retirees from the service. The health facilities in California are also second to none. All these features make California one of the most desirable places for veterans.
Sometimes, it might so happen that a veteran living in California has to move to a new location on a short notice. Active duty personnel of the U.S. Army, often have to go for PCS or Permanent Change of Station moves. In such situations, they often go for a VA Short Sale. These types of transactions are also called ‘compromise sales’, ‘compromise claims’ or ‘offers in compromise’. The Department of Veteran Affairs might accept short sale, provided that the cost of the short sale to the Department of VA is less than the cost of foreclosure.
An Overview of the Process
When the veteran homeowner, who has a VA Mortgage, receives an offer on the property at the current market price, which turns out to be lower than the amount of loan pay off, then the veteran can apply for a short sale on the property to the Department of Veteran Affairs (VA). The Department of VA would then review the situation with the mortgage company. If they approve of the deal, then the Department of VA would pay the difference between the mortgage balance and proceeds of the sale of the property. There are times, when the lender approves the sale on behalf of the VA through the service Loss Mitigation Program. In fact, most mortgage companies have their own Loss Mitigation Department to handle such cases of short sale or compromise sale.
Some Facts about the Short Sale Process
The property should be sold at market value. The closing costs would also have to be normal.
There cannot be any second liens or any other liens on the property.
The seller should be in a tough financial situation.
You would be required to fill in a few forms. For example, you would need to fill in the financial status form, which would be provided by the VA or the lender. You would to complete the letter of request. You would also complete a Compromise Agreement Sale Application.
The options that you have
Well, if you don’t want to go through the hassles of a short sale, then you can always modify your loan. In fact, the government actually encourages loan modification. Recently, President Barack Obama has offered $1000 incentive to homeowners who opt to go for a loan modification rather than a short sale. If you want to know whether you are eligible for a loan modification, it is advisable that you get in touch with a VA approved lender in California. Such companies would have VA Loan Specialists who would tell you about your options in such a situation, the things you would need to have in order to qualify for a loan modification and how you can make the most of the benefits entitled to you. So, get in touch with a professional VA Loan expert in California and get all the information to make the right call. Remember, an informed decision is always the right decision.