Loan Servicer doesn’t follow VA Short Sale guidelines on a short sale of a VA Loan

Posted on December 1st, 2010 in All Articles, Short Selling/Buying.

Chicago IL – We recently negotiated a short sale on a VA Loan. After the appraisal is complete and all the other necessary document have been received, VA guidelines state the loan servicer should give us an answer within 15 days.

The loan servicer took 65 days to give us an answer. That is a complete violation of VA’s requirements. “Oh, but that’s no big deal”, you might say.

Discover how other sellers successfully did a short sale to avoid foreclosure by clicking here.

It is a big deal, because VA (and every single US Taxpayer) loses money as a result. VA insures VA lenders against loss, provided they follow their guidelines.

VA is able to make an “educated bet” that they can issue these guarantees because they have laid out rules to control the lending and loan servicing environment. When the company servicing the loan doesn’t follow VA’s guidelines, it is no longer an “educated bet.”

Most short sales that get turned down and foreclosed upon sell for less as a foreclosure. That means VA loses even more money.

I can tell you from experience as a Chicago Short Sale Realtor that the 60 day turn around means that VA loses a lot more short sales to foreclosure.

But no one really cares because it almost a victimless crime. At least the victims don’t care. The employees at VA don’t get hurt because it’s not their money.

The US Taxpayer already knows the government wastes money. The victim ends up being American’s Veterans who don’t have as much money in the VA Loan Program to use to buy a house.

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 phil@teambrealty.com. I will contact you for a free consultation.

When we talk, I will explain how the process works in detail. If you prefer, then 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 for tips 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. phil@teambrealty.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.

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 Phil Buoscio’s personal views and do not reflect the views of Better Living Realty – Buoscio Brokerage, Inc.. This information on Loan Servicer doesn’t follow VA Short Sale guidelines on a short sale of a VA Loan is provided as a courtesy to our viewers to help them make informed decisions.