They finally did it! After years of the VA Compromise Sale net requirement being 88.13% of the VA liquidation appraisal value, it has been reduced! It is now 85.05%. The VA Circular 16-13-15, “New Percentage to Determine Net Value” made the change effective October 8, 2013. What does this really mean? If your VA Compromise Sale home in Crestview, Fort Walton Beach, Navarre, Niceville or Destin Florida, appraised for $100,000, the net proceeds from the sale would have to be $85,050. The net proceeds are what is left for the Veterans Administration and your loan servicer (for example, Bank of America), after closing costs are paid. Closing costs can include state transfer taxes, (like documentary stamps on the deed), prorated taxes, Realtor commission, association dues, etc. The previous net requirement would have been $88,130, so there would be more than $3000 extra in this scenario. I think this is a good change. The net allows for higher closing costs. Why is that good? If the service member has a junior lien, there would be more funds available to pay them to allow the short sale. It also allows more closing costs to be able to able to pay some buyer closing costs. In the end, this benefits the service member from Eglin Air Force Base, Hurlburt Field, Duke Field or Whiting NAS airman.
Wendy Rulnick, Broker, Rulnick Realty, Inc.
Call toll-free 1-877-487-9639 or local 850-650-7883 ext 204
Email Wendy: [email protected]
Here is the complete Veterans Administration circular: