If you are a service member or Veteran near Hurlburt Field or Eglin Air Force Base, you may be considering a VA Compromise sale if you have a VA loan. A compromise sale (or offer in compromise) is when the Veterans 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.
Two questions always come up when I help with VA Compromise Sales:
To get a direct answer, I called the Veterans Affairs Regional Office in St. Petersburg (telephone 1-888-611-5916), which covers the state of Florida. 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.
Yes, you may still be able to get a VA home loan with your remaining entitlement. 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.
Call Wendy Rulnick, Broker, at 850-650-7883 ext 204 or email firstname.lastname@example.org