The VA Compromise Sale Program.
Homeowners who already have a VA (Veterans Affairs) Loan may process their short sale through this program. VA Loans are available to eligible servicepersons and veterans and, in some cases, spouses.
VA encourages your lender to approve the short sale.
The VA Short Sales Program works by VA guaranteeing your lender a percentage of the loan value. The will pay some or all of the deficiency, so your lender’s loss is reduced. This makes it more likely that your lender will approve your short sale.
The deficiency balance.
The VA Short Sales Program does not contain any specific guidelines about your lender waiving you of having to repay the deficiency balance. However, these days, nearly all of the lenders we work with do waive the deficiency.