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In 2009 when the economy took another nose dive the business I was working for just shut their doors on a Friday. We ( the employees) arrived for work on Mon AM and found the doors chained and padlocked and the owners gone to parts unknown. I used my 3 mos emergency monies rather quickly for bills and house payments. Long story short--had to do a short sale, made no money on a beautiful home, and move in with a friend and found meager job removing tattoos by laser surgery. The realtor made money but did not pay the VA for their part in my loan---which I advised her was necessary. Wow--big surprise--credit bureau notified (not me) of that default and did not discover that I now had no access to a VA loan for another possible purchase until two mos ago. Something is not kosher and I don't know where to seek help.
Doc B1. PS--and now 5 yrs have passed. Anyone out there heard of similar experiences? Realtor advised me she was under no obligation to rectify the VA aspect during the sale. Is there a recourse available. Thank you.

3 REPLIES

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The VA calls these compromise sales and would have required you to obtain approval before going through the Short Sale process. 

 

In these cases, the proceeds from the sale would have been used towards what your owed your loan servicer  Since in a short sale, this is usually less than what you owe, the VA would have paid the difference (up to the guarantee) to the servicer.  

 

"Should VA agree to pay the difference between the sales proceeds and the total debt to complete the compromise sale process, the portion of thehomeowner’s entitlement used to guaranty this loan will remain tied up until VA is reimbursed in full."

 

The Realtor would have been entitled to their commission per the contract you signed.  I can think of no scenario where a Realtor would pay the VA anything.

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Thanks. Disappointing as she clearly withheld that info. Doc B1
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DSTEXAS, Thanks for answering Doc B1.

 

Doc B1,

I am so very sorry to hear about your situation. If we can assist you in any way, please give us a call here at 1-800-531-8722! Thank you!