I have a VA short sale that is taking a long time for lender approve. They said the holdup is the seller is current on her payments so they have to get a variance from VA. Someone at VA told me they don't issue such variances, and if the lender approves the short sale, VA will not pay the guaranty because the borrower is not in default. But I closed one last fall where the seller remained current and never went into default, Any thoughts?
We have never closed a VA Compromise Sale with the Borrower being current. VA regulations typically require 60 days of delinquency.
It makes sense the Servicer will not close without the VA backing. I would agree with Brett, where the short fall amount is minimal, they may proceed... OR the file simply fell through the cracks.
As far as requesting a variance... Never heard of such a thing with VA. Maybe the Servicer has their information confused with FHA. Chad.