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Anybody have experience with where a VA is involved and how did the deficiency issue work out?

Posted by ANGEL PRASEUTH on February 17, 2012 at 7:52am in Short Sale Discussions

 

Chase did not issue a deficiency waiver on the letter and referral agent to the VA for their position.  The VA said they wouldn't come after the client, but didn't say they would instruct Chase to revise the letter.  Instead, they said Chase would send them a letter 30 days following the short sale.  Anybody have experience with this situation?  Please advise.

 

Thank You,

 

Angel Praseuth

 

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Replies

  • Kevin - Greenville, SC February 17, 2012 at 5:29pm

    There is no deficiency per se in a Compromise Sale, but some of all of the benefits under the VA Loan Guaranty Program will be unavailable until it's repaid

    CONS
    •
    On VA guaranteed loans, this option can affect the homeowner’s ability to use the VA entitlement for future home purchases.
    •
    On Non-VA guaranteed loans, the lender has the option of establishing a debt for the amount of the deficiency against a homeowner

    http://www.scribd.com/doc/80420535/Compromise-Sale-Agreements.

  • Becky Martin February 17, 2012 at 3:10pm

    I closed one with PNC in Nov and got a waiver in the approval letter....had to pat myself on the back for that one but we went thru 3 buyers and the whole process took 10 months!

    • Joseph Alfe > Becky Martin February 17, 2012 at 3:25pm

      you got VA to waive deficiency?  I have never heard of such a thing but if it's true that is awesome!  Maybe they are changing their rules.

  • Joseph Alfe February 17, 2012 at 10:10am

    VA never releases deficiency, and not only that, but they can and will take the deficiency out of vet benefits.  VA makes me puke.  I have seen them run vets into foreclosure or worse.  Nothing you can do about it either.

    • ANGEL PRASEUTH > Joseph Alfe February 17, 2012 at 1:50pm

      Hi Joseph,

      Thank you for your prompt response.  That is too bad VA has to be this way.  Have a nice weekend Joseph.

       

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