Why Military PCSing Should Short Sale Their Home
Military Short Sale – Comprehensive information below:
Recent success stories: Wells Fargo (easiest lender to deal with), 360 Mortgage, Bank of America. While our use of an Attorney is mandatory, make sure your agent has experience with short sales (especially VA Compromise Short Sales). The attorney and agent working together greatly improves the process.
Do you have a VA backed mortgage? Learn about VA Compromise Short Sale here.
For several years military homeowners (Navy/Marines/Air Force/Army/Coast Guard) underwater on their mortgages and facing pcs transfer have avoided the short sale process. Military have had tough choices to make with their properties and moving families. Similar to a short sale but with no credit implications, most have not qualified for the more than generous Housing Assistance Program (HAP).
Most military homeowners have pcs’ed and rented out their residence “sucking up” the deficit in rent versus the mortgage payment. Renting out their home has in most cases prevented the military member from both refinancing because of being underwater or buying a new home in the new PCS location and taking advantage of lower interest rates and settling their families.
(Note: When working with Dennis Blackmore, REALTOR(R)/Agent Owner Creed Realty the bank pays all real estate military short sale commissions and closing costs.)
Military homeowners continue to make mortgage payments because of “pride and moral responsibility” issues and not wanting to face short sale, foreclosure, or potential loss of security clearance. Now newly offered short sale options are more available to the military. Read article on “Military Short Sale Stigma – Just Lose It!!”
The decision for military personnel pcs’ing to short sale their home is a huge personal issue and should be discussed with a REALTOR(R) and a Real Estate Attorney. The REALTOR(R)/Attorney team is an important part in the process. These short sale opportunities for military families to “get well” are probably once in a lifetime
Previously the National Mortgage Settlement Act provided relief to service members by:
Relief for servicemembers forced to sell at a loss due to a Permanent Change in Station (PCS). Under the Department of Defense’s (DOD) Homeowners’ Assistance Program (HAP), some servicemembers forced to sell their home at a loss due to a Permanent Change in Station (PCS) may be compensated for the loss in their home’s value.
Under the settlement, mortgage servicers will provide short sale agreements and deficiency waivers to those servicemembers who were forced to sell their home for less than they owed on their mortgage due to a PCS, but who are not eligible for HAP. The provision extends benefits to servicemembers who bought their homes between July 1, 2006 and December 31, 2008, or who received a PCS after October 1, 2010. (Thjs may make you eligible)
Recently, Fannie Mae and Freddie Mac announced their own program to help military homeowners pcsing and short sales. Specifically:
2. The military member must have purchased their Virginia Beach or Hampton Roads home on or before 30 June 2012.
3. Fannie Mae and Freddie Mac will not pursue a deficiency judgment or any cash contribution or promissory note from members of the military with a change in duty station for any property purchased on or before June 30, 2012. (Note: experience in military short sales holds this true for most all financial institutions, not just Fannie and Freddie).
Military members who have or are pcsing should consider these “more acceptable” options available and consider a short sale to financially get back on track.
Contact Dennis Blackmore to help list, advertise, and sell your home.
About: Dennis Blackmore is a retired Naval Officer having served 24 years both as enlisted and later a Limited Duty Officer. He is very adept in helping military families with buying, selling, or relocating – and responsive).