If the owner's mortgage is guaranteed by the VA what are the odds that a short sale will be successful? Should the owner try?

Will the bank be better off letting it go into foreclosure?

Thank you for sharing.

I've heard that you want to stay away from FHA and government backed loans. The reason is that they end up foreclosing. Yours & homeowner's time wasted.

What's your experience with these type of loans?

Nope in fact just the opposite. The conventional 80/20 loans are hard to close because the second is always a PITA in the process.FHA's have been some of my most easiest.

FHA and VA short sales are not very common at all. Hardly anyone did these types of loans within the last 5 years. FHA and VA government backed loans are going to have to ease up and deal with the short sale process because within the next 3-5 years many people that are getting homes now via FHA and VA will be defaulting as well due to the current economy. Short sales are here to stay for a while.

I have a short sale that is an FHA loan on the 1st loan. There is also a 2nd loan as well, I think maybe a HELOC. The 1st loan is with BB&T and the 2nd is with GMAC. When I spoke with the negotiator at BB&T, she stated that because the loan is FHA, they are more strict with what they will pay to close the short sale. They will only pay up to 1% towards buyers closing costs. I will let you all know what happens with this one.