The homeowner is current on the mortgage but want to do a short sale. Reason being due to crime and forclosures in neighborhood. Loan is a VA loan. They would like to purchase another home under VA. Would they still be able to do a short sale and also purchase another home?
I've had other VA sellers do this. In a VA Compromise Sale, the portion of their entitlement that was used for the VA Compromise "sold" property won't be available until they re-pay it (if they choose to one day). They should have remaining entitlement, however. The VA borrower should call the VA and get specifics on his case, as this is even difficult for a mortgage lender to do :)