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Module 3 Discussion: Compromise Sale
  • 3. A compromise sale is the VA terminology for a short sale. Have you worked with military service members who have been in this situation? What are some things that make the process easier?

    After you have posted to this discussion, review your colleagues’ comments and reply to at least one other post.
  • No, I haven't either. I can only imagine that the process would be easier if the member had to PCS instead of just financial hardships.
  • As a Realtor I have not been involved in the facilitation of such a transaction with any of my military clients, but I do know of active duty military members who have been faced with this dilemma.
  • I have experienced a compromise sale as a veteran, it is not as difficult as a conventional short sale.
  • I have never worked with a seller of a compromise sale. I have my own VA loan and found the information in this cou
  • I have never seen a comprise sale. Since being in real estate the market has been very kind to the people i know.
  • A compromise sale is the VA terminology for a short sale. Have you worked with military service members who have been in this situation? What are some things that make the process easier? I have not had to work with anyone facing a compromise or a short sale.
  • I have no experience with a compromise sale transaction. However, since the VA guaranty will cover the remaining (covered) portion of the loan balance after the close of the a compromise sale, lenders are likely to process the sale more quickly than a traditional short sale.
  • I have never worked with a compromise sale. But it seems like it might be easier to navigate than a regular short sale, since VA will cover the difference (up to the limit) between the mortgage amount due and the sale amount.
  • As a Realtor I have not been involved with a compromise sale with any of my military clients.
  • I have not worked with anyone doing this type of sale yet. However having the right lender in place is key to making the transition easy.
  • No I have not
  • No, I have not.
  • SHORT SALE is NOT SHORT. I have done several on both sides. Not VA but short sale.
    Everyone needs to be on board. It is not easy. There is a lot of paperwork. It takes a LONG TIME.
    Buyer makes and offer; seller accepts offer then it goes for 3rd party approval. This can take months.
    I have a nice client who stuck it out. They put in an offer and waited and waited and waited. The Seller did what was necessary. 10 months after the offer they closed on their home for $199,000 in a neighborhood that is $250-400K. Home needs updating but it is sound. They are happy happy happy.
    Another time the Seller just got tired and walked: forclosure. My buyer had an offer on the table for 8 months...... The Seller's lender will require lots of paperwork; every month they need to provide a hardship letter, proof they cannot make payments, bank statements etc. MONTHS
  • No I have not. Tried several times, but my offer was not the best offer.
  • In my area, I am dealing primarily with retirees and veterans, so I do not have many active duty personnel that may get a PCS. So, I have not encountered this.
  • I have yet to have had the experience with either a short sale or a va compromise sale. I have heard that a SHORT SALE is a very long process and there's quite a bit of paperwork.
  • I have not worked with a military member but I do hold my CDPE and SFR for short sales. I became certified during the last down turn of the market and concentrated on closing short sales and leasing properties to home owners that were going through short sales and foreclosures. A lot of those sellers returned as buyers and have purchased homes again from me. People do not forget when you help them through a tough time. So rewarding!
    The lender will provide a list of what documents they want but I have a pre check list to help the seller start collecting the documents. But letter of hardship is so important to be properly written and to paint accurate picture of the events leading to the hardship. proof of unemployment or change in status, bank statements, authorization to speak on their behalf is also important. list of all assets and debts.
  • I have not. But while in the Navy I know Sailors have done short sales due to having to transfer early, or other circumstances they were not ready for.
  • I have not worked with a VA compromise sale. I have, however, worked with civilian Short Sales and have my Loss Mitigation Certification and the Advanced Certification.

    I really like the fact that PCS-ing makes service members eligible for a compromise sale and that makes things easier right off the bat.
  • I had a VA compromise sale after the market tanked and I was outside of the HAP timeline. My future VA eligibility was affected as I can now only have $263,000 covered VA.
  • I have not. I recently took a class through the Northeast Florida Association of Realtors though, where I learned that Brian Klidies can have the full amount of his original entitlement restored. First, however, he has to repay the VA for the amount that the VA paid to the lender on the VA compromise sale.
  • I have not been in this situation yet.
  • I haven't worked with VA compromise. Sounds easier than a short sale.
  • VA compromise is the term for short sale. Basically getting rid of property for less than what you owe. Just the opposite of a purchase, this case you have to qualify to get rid of the property without any financial liability. I am a licensed loan officer and the items you need to sell the home are almost the same as to BUY a home!
  • I have done short sales but not with VA loans, or military.
  • I have not worked on a VA Compromise Sale.
  • I have not worked on a VA Compromise Sale.
  • I have not worked with a VA Compromise sale, but based on what I’ve read in this course it’s easier than a short sale. Banks are slow in supplying the information needed to short sale a property, but it seems like a VA Approved lender can make a local decision which would speed up the process.
  • I have not worked on a VA Compromised sale.
  • I have not yet experienced a VA compromise sale.
  • I do not have experience with a military compromise sale, although I imagine it can be stressful for many reasons, especially with the prospect of not selling in a slow market when one has a PCS.
  • when current homeowners' value falls below current market, the homeowner can ask for a compromised sale. High volume lenders, typically have a loss mitigation department authorized bu VAto review, approve and process the compromise sale. If approved the VA will pay the difference bw the mortgage balance and sale proceeds. VA pays the mortgage company the difference bw sale proceeds and mortgage balance... up to the max guaranty.
  • No experience with VA compromise sales but working my first FHA short sale currently and it is a huge process...it's nice to know the VA compromise is not as strenuous of a process as this current one I am in.
  • No, I have not worked a deal when a VA loan had to be compromised. Based on this discussion it appears to be a short process from other lending practices.
  • @Kelly Fisher, thanks for sharing that information. It sounds like what was happening during the 2008 financial crisis.
  • I am in process of working one right now. A military couple, divorced plus home was destroyed by family dog during that time. Home has sat empty for almost a year and in disrepair. Home was in mid-stages of foreclosure when I contacted and we began the VA compromise route. Started process in late June & still working with the Lender to accept an Offer. Wish us all luck!
  • No, I have not worked on a VA compromise sale.
  • No, I have not worked on a VA Compromise sale, however,after this course, I now feel confident to assist a seller and know where to look for help with the transaction.
  • Haven't, but know the basics is helpful if a transaction like this comes around.
  • Luckily no experience
  • I haven't dealt with compromise sales for military members but I did have clients that had a short sale and had to wait 2 years to buy their next home.
  • @cindy good luck! Hoping you get it done soon!
  • I have not experienced facilitating a compromise sale.
  • I have no been in a situation where a compromise sale was done.
  • I have not worked with VA compromise sale. I am in agreement, that is nice to see that there is something in place for the military personnel or get orders and need to sell quicker. I have see a short sell and was told by a fellow agent to avoid short sales due to the length of time it does take to happen. Seems to be a very patient process, pending frustration does not kick in sooner than later.