I need some help for a friend's son. He is in active military, bought a property with VA loan. Mobile Home and about an acre in Hinesville, GA. He has long been moved away, and will be seconded to Alaska shortly. Good mortgage payment history, not delinquent. Needs to sell, owes about $55,000, not sure the market value - some suggest it's around $35,000. He needs some counselling about his options. It's outside of my area, and I have not done VA SS before. Any short sale superstars in the area prepared to take this one on? I am not looking for a referral fee - just someone who is prepared to help.
The bank may require of him to be 90 days delinquent to consider the SS depending on the servicer as well.
Is he for sure ready to do a SS and ruin his credit perhaps? My suggestion is to place the Mobile for rent with a Management Company and let them deal with renters. Also, let the market meanwhile pick-up and place in the market thereafter for sale. It sounds as it could be easily rented according to the UPB mentioned unless I 've missed some other big pieces of info. VA are not very complicated. The appraisals have different terms and VA admin take their sweet time to respond that's all.
VA does not require a borrower to be delinquent, they need a hardship. If the borrower was PCS'd, they most likely will qualify for a VA compromise sale.
@Angel, why would a short sale wreck his credit if he does not miss a payment?
Jeff you are correct. I forgot about that provision. He will qualify for all the benefits of Sailors act as an active military member. I've seen SS completed with current mortgagors while in BofA. He will need to contact the servicer for options.
In regards to your question Jeff, traditional short sales leave a very bad impression to the TRW (the major credit agencies) companies. On my own experience trying to apply for a mortgage loan three years after short selling needs lots of explanation of how and why happened. Now, a short sale closed in a current loan will be interesting for me to see about the credit rating afterwards.
Good point Ron, the short sale may not impact the credit score much if they do not miss a payment but it can certainly affect the time period to be able to purchase again in many cases. I have seen credit scores raise after a short sale. Helped a friend and his score went from 625 to 655 after doing a VA short sale without missing any payments.
A SS provision is not mentioned in the SERVICEMEMBERS CIVIL RELIEF ACT OF 2003 EXAMINATION PROCEDURES, however, doesn't mean it can be done. It all depends on the investor's delegation towards the servicer.
Short Sales comes down to this; we all know it will take at least 90 days to close one. Should you have a current mortgagor client requesting a SS well good luck. Bureaus and Lenders know that after 90 days, 120,150 days the word foreclosure is there. Therefore, you must explain and provide in writing your successful outcome. After having 4 years in a steady job without missing any of your obligations with a decent down payment may lead you to fair interest rate (by experience).
Angel, your last post is very hard to understand? Are you saying that you have never done a short sale with a current borrower? I am from Florida and we do it quite often. I am in a military town with alot of VA short sales and also in a beach town with alot of investor condos in short sale and have closed many of both that are current on their payments. Closed on yesterday, VA compromise sale and the borrower was PCS and did not miss a payment, had not lived in the home for over 2 years.
Jeff, if you are so good a closing those current, well perhaps you could help the active member above.
Angel, I would if I was from Georgia.
Looks like you could use some help with your limiting beliefs
Yes, Jeff I could use some help with those. What happens is that working for the biggest servicer in the country for many years with a large portfolio in my pipeline, I personally, never did close a current borrower applying for SS. I've seen it when escalated to OPP/ or VP/ SVP very seldom and got it done but not on my watch. Well, now I know where to go for an advise... ; )
Btw, don't you work online as my self? I'm not as good with these otherwise I would go out of my way to assist a soldier. When I used to talk to them I remember were the most respectful people of all the borrowers. And I went out of my way assisting them because of the admiration I have for the men and women who put their lives on the line for our freedom.