Lake Ridge Virginia Real Estate Help For Sellers and Buyers

It was back in September that I got a call. The caller said " Peggy, I was reading that you help people who might need to sell by short sale in the Woodbridge  VA area.We live in Lake Ridge and  my husband is returning from Iraq . He has accepted a job in another state. Can you sell our home?"

" I asked..."Do you have orders?" 

She said "No he is not active duty. Is there help for veterans? Are there any programs that we fit into to short sell our home? The only job offer he got is in another state. He has to take it, we need the income to survive and pay bills."

Folks I want you to make a mental note. The family did not have any hardship up to this point. However once the wheels of a relocation were put into motion. That meant the caller would loose her good paying job and the townhome they owned in the Lake Ridge Virginia although very nice and in great condition was purchased at the height of the market! This is when everything began to fold like a house of cards.

Now the bad news: several foreclosures had recently settled in and around their home. We could get the home rented quickly however, the fair market rent was $550.00 less than the fixed rate monthly mortgage payment. They did not have that kind of money.They could sell home for sure, it was in very good condition and according to the current market conditions. I felt certain I could get it sold for in the somewhere in the $189,900 price range. However that is far less than what they owed the mortgage company. They owed $287,000!

The sad part is these homeowners did everything right. They bought a home with a fixed rate VA Loan, updated and cared for the home during the time they owned it. Now in today's current real estate climate the house is upside down by almost $100,000.

The only option was a Short Sale.  I showed the owners proof example after example of other homeownersI've help complete a successful short sale. I shared with them that back in the old days back in 1989-2003 in the last downturn in our market, I assisted many homeowners by doing VA Compromise Short Sales. This program has been in existence for a long time. That VA Funding you pay up front when you buy, helps VA offer this program. What is new is the degree of the losses! They are catastrophic. Back then Veterans were forced into signing a Promissory Note and if they didn't do that, they needed to come to the settlement table with a check for the short fall if they had purchased the home before 1989! The  highest check I ever saw was $26,300 written to the settlement attorney to sell the house.

The good news is we  listed the home for sale and soon a buyer made a good solid offer on their home and the Sellers accepted the offer and then I got to work! It took their mortgage company five long months to Approve the VA Compromise Sale, however the sellers nightmare is over!

Best news:

• The owners did not have to sign a Promissory Note!
• The owners did not owe anything on Settlement Day!
• The owners have relocated and they get to start a whole new chapter in life!

There is a down side to considering selling by short sale for a veteran. Seller's please take note:

 Entitlement - 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.

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If you have any questions about the VA Compromise Program and how it can help you and your family, please don't hesitate to call me. Here is the basic factors that must be considered for you to be able to submit for VA Compromise Sale/ Short Sale.

• The property must be sold for fair market value.
• The closing costs must be reasonable and customary.
• The compromise sale must be less costly for the Government than foreclosure.
• There must be a financial hardship on the part of the seller.
• On loans that originated on or before December 31, 1989, the seller must be willing to sign a promissory note.
• There must be no second liens or other liens(unless the amount is insignificant). In situations whereby there are second liens or other liens, the seller can request that the lien holder consider releasing the lien and converting the loan to a personal loan.
• The seller must first obtain a sales contract in order to be considered for the program.
• To protect the seller's interest, the seller should make the sales contract contingent and/or subject to the approval of a VA compromise sale.

  If you have a VA Loan on your home and you need to sell, give me a call. I can help!

         Curious What Your Home Is Worth?  Call me 703-851-3085 or or contact me by email .

Erick and Company services Lake Ridge, Westridge, Old Bridge Estates, River Falls, Middle County, Manassas, Manassas Park, Haymarket,Montclair, Dumfries, Occoquan, Dale City, Gainesville, Aquia Harbor, Garrisonville and Triangle area's . Note: there is a shortage of homes for sale in Prince William County VA. Now is the time to sell.