Chicago Short Sales: How VA Short Sales Work

Posted on September 24th, 2010 in Short Selling/Buying.

Chicago IL – People with a VA loan often ask if they are eligible for a short sale. The answer is yes. A VA Short Sale is called a VA Compromise Sale. The Department of Veterans Affairs publicly releases copies of the Compromise Sale Guidelines.

We usually list the property for sale and then submit all the short sale paperwork after a contract is accepted by the seller. The lender will order a VA Appraisal. All the appraisals go thru a VA Loan Center. There are 9 Regional VA Loan Centers as of today.

After the appraisal is done, I always call the local VA Loan Center. I fax them a request for a copy of the appraisal. They will fax me a full copy of the appraisal.

I can see everything on the appraisal. All the comparable sales they used, etc. I love it because it makes the short sale process more transparent.

Now if only we could get Fannie Mae & Freddie Mac to do the same thing! If I think the appraisal has inaccuracies, then I can request a dispute. Most of the Loan Centers have an appraiser on staff that handles disputes.

Here is how to find out if you have a VA Loan. On the mortgage recorded in the public records, usually 1-4 pages past the signature page will be a VA Rider. At the top it will say “NOTICE: THIS LOAN IS NOT ASSUMABLE WITHOUT THE APPROVAL OF THE DEPARTMENT OF VETERANS AFFAIRS.”

The picture below is from a VA mortgage. The page for the VA mortgage was 2 pages below the original signature page of the mortgage. The pages between this and the signature page had the notary signature and the legal description.

These are fairly simple short sales. They are tougher than others because VA will not accept a sales that nets them less than 88.13% of the VA appraisal.

I don’t think they allow exemptions. I don’t know because I have never asked for one. The lenders are not delegated, at least not in my experience. The process is the lender assembles a package and submits to VA.

Will I get a Deficiency Judgment on a VA Short Sale? They will give a complete release if a seller participates in the short sale program. But, the borrower has to pay back the loss to be eligible for a VA loan.

Thinking about a short sale? I can help you short sale your property and never pay the bank another penny. Send me an e-mail at myrealtorphil@gmail.com. I will contact you for a free consultation.

When we talk, I will explain how the process works in detail and answer any questions you may have. Or, if you prefer, you can call me at (312) 953-6725.

Discover how other sellers successfully completed a short sale and request a free consultation by clicking here.

Remember to visit my Chicago short sale blog frequently or email it to your friends for updated news and information on Chicago short sales www.Chicago-ShortSaleBlog.com

Thinking about a loan modification? Our Chicago Loan Modification Kit has the instructions you will need to get a loan modification approved with your lender. Click here to request a copy.

Thanks for reading this, Phil Buoscio.

Phil is a Real Estate Agent at Better Living Realty – Buoscio Brokerage, Inc..

Phone: (312) 953-6725. myrealtorphil@gmail.com.

View My homes for sale at www.BetterLivingRealty.com.

Phil Buoscio specializes in loan modifications and short sales in Chicago Illinois. Chicago Loan Modification Help. Chicago Short Sales. Chicago Short Sale Realtor. Chicagoland Short Sale Realtor. Chicago IL Short Sales. Chicago Realtor.  We know Chicago Short Sales. I am a Chicago Short Sale Realtor. Chicagoland Short Sale Realtor. Chicago IL Short Sales. Chicago Realtor. We do business in Pilsen. McKinley Park. Bridgeport. Wicker Park. West Town. Ukranian Village. Lincoln Park. Near North. River North. East Village. Logan Square. Uptown. Edison Park. Portage Park. Hermosa. Lincoln Park, South Loop, West Loop. Bronzeville. Hyde Park. Kenwood. Oak Park. Brookfield. Cicero. Berwyn. Evanston. LaGrange. LaGrange Park. Riverside. We sell condos, single family homes, lots, land, multi units, two flats, three flats, etc.

Copyright 2010 SFI Marketing Institute, LLC. All Rights Reserved. This is not intended as legal, technical, or tax advice. Please speak with a licensed professional before making any decision. Information is deemed reliable but not guaranteed as of the date of writing. The views expressed here are Buoscio’s personal views and do not reflect the views of Better Living Realty – Buoscio Brokerage, Inc.. This information on Chicago Short Sales: how VA Short Sales work is provided as a courtesy to our viewers to help them make informed decisions.