View the article below regarding a VA Compromise sale for those in the service whose mortgage payoff is greater than their sales price is. (if you have a VA  loan.)  A compromise sale (or offer in compromise) is when the Veteran's Administration approves the sale of your home when your mortgage payoff is greater than the sale price, and there is not enough to pay back your VA entitlement.  You must have a hardship and need to sell.

Click here for the whole Blog!

Two questions always come up when I help with VA Compromise Sales:

1.     How will a VA Compromise Sale affect my credit?

To get a direct answer, I called the Veterans Affairs Regional Office.  They told me VA Compromise sale is reflected as “settled for less” on credit reports.  “Settled for less” is a common reporting for short sales, as well.  The exact number of points that your credit will be affected depends on your complete credit picture.  Remember, if you missed payments, that will also show up on your credit report!

2.    Will I be able to get a VA loan again if I do a Compromise Sale?

Yes, if you pay back the entitlement that was not paid back to the VA at the sale. Specifically, the Veterans Administration says: 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.

But remember, there are other types of mortgages that will be available to you, if you are unable to seek another VA loan.

And as always, I'm just a call (843.452-6670) or click away! I'm here to answer any of your questions about loans, short sales, or any other concern you may have!

~KARLA

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