Short Sale on a VA Loan

[Ricky Gibson]

I just got off the phone with Realtor who recently has a listing expire that has a pending sale date of April 30, 2016. The Realtor informed me that her client didn't want to do a Short Sale because the Title Company told them that they would have to come to the closing table with approximately $30k. Payoff was about $308k and the Realtor said she had a buyer who was will to pay $299k. Is there something that is done differently in regards to working a Short Sale with VA Loans? This is the first I've ever heard of VA Loans being handled differently than say a Freddie Mac or Fannie Mae. Any insight would be greatly appreciated. Thanks in advance.

[Ruben Ortega]

The payoff is irrelevant in a short sale. In most cases, the seller should not have to pay a penny at closing. If property goes under contract, the VA will order an appraisal and obtain it's fair market value. They will then accept an offer that nets them at least 88% of the appraised value. Most agents or buyer's rep don't know that they can go directly to the VA and obtain that appraisal value. Having a good contact at the VA is important, especially when the short sale lender or servicer give you the run around.