Do VA sellers have to pay the banks back after a short sale? What about the VA guarantee?

Asked by Annie Smith, Oxnard Dunes, Oxnard, CA Sun Jun 5, 2011

I am active duty and about to be laid off due to the war ending and people comeing home. I need to do a short sale on my condo since i wont be able to afford it soon. VA loan has up to $78,000 covered under that program before I am responsible to pay the difference between the short sale and what the bank gets. B of A told me that if it goes over $78,000 I have to pay it back. This is a purchase money loan. Don't i have the same rights as other people who don't have to pay theirs back? Why does a VA seller have to pay a short sale bank back?

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Barry Shapiro, Agent, Camarillo, CA
Sun Jun 5, 2011
Annie,
Thank you for reaching out for answers. The Bank of America has been in the distressed property news headlines recently concerning the way they allegedly handled some military foreclosures: http://www.dsnews.com/articles/justice-department-settles-wi… & here is a copy of the officially filed Complaint by the US: http://media.signonsandiego.com/news/documents/2011/05/26/BA… ... So, as long as it's purchase money on the first mortgage, you will be okay on the short sale. Check out our site and the interactive video to explore all your options. Seek legal counsel and tax advice as well before making a final decision.
IMPORTANT GOVERNMENT DISCLOSURE: You may stop doing business with us at any time. You may accept or reject the offer of mortgage assistance we obtain from your lender (or servicer). If you reject the offer, you will not have to pay us for our services. The above brokerage is not associated with the government, and our service is not approved by the government or your lender. Even if you accept this offer and use our service, your lender may not agree to change your loan.
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Ariel & Karen, Agent, Hollywood Beach, CA
Sun Jun 5, 2011
Dear Annie,

Part of the short sale negotiation is for the bank to release the sellers of the debt by approving the short sale. This can be done even with VA sellers. We work with a professional negotiator with a great success rate of getting short sales approved, and we've done it for several of our VA sellers. We ALSO have experience selling homes through the Dept. of Defense Housing Assistance Program, which some veterans are eligible for. We recently sold one home via this program in Oxnard Shores and one in Port Hueneme. I see you are in the Dunes. If you'd like to speak directly to see what you may qualify for, please contact me directly - 805.746-2070 or read our client testimonials at http://www.ArielandKaren.com. We'd be happy to send over VA or short sale specific references too on request. Good luck!
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