A compromise sale or short sale is always more advisable than a foreclosure. In instances where a military person has a fannie mae or freddie mac loan their chances of getting a short sale sound more possible if they have a hardship. Documentation still has to be done to prove their case but VA tries to save the loan whenever possible.
What can we as realtors do? Help the seller assemble the compromise sale package to include-- 1. Purchase offer with a contingency stating subject to VA approval & home listed at current market value. 2. Good faith estimate of closing costs 3. Financial statement w/ supporting documentation. 4.Hardship letter 5. Compromise Sale Agreement (available from the lender) 6. Payoff statement from lender