What is a short sale and when does it make sense?›
A short sale is selling your home for less than what you owe on the mortgage, with the lender's approval. It makes sense for veterans and active duty service members when you owe more than your home is worth, you're facing financial hardship that prevents you from continuing payments and foreclosure is a realistic alternative. A short sale is almost always better than foreclosure for your credit, your future homeownership eligibility and your peace of mind.
What is a VA Compromise Sale?›
A VA Compromise Sale is the VA's short sale program for homes financed with VA loans. The VA pays the lender the difference between the net sale proceeds and the loan balance — so you are not required to repay the shortfall out of pocket. However the amount the VA paid out remains as unrestored entitlement, reducing your available VA buying power for a future purchase until the VA is reimbursed. Jerrod calculates your specific entitlement impact before you proceed.
Will I owe money after a VA Compromise Sale?›
In most cases today — no. Older VA short sales could leave veterans and active duty service members personally liable for the deficiency, but VA policy has evolved to routinely grant pre-foreclosure debt waivers and releases in approved short sales. Today, most VA-approved short sales are structured so the veteran is released from personal liability, subject to the terms of the VA approval. However the shortfall is not forgiven debt in the traditional sense — it becomes unrestored entitlement that reduces your future VA loan buying power until the VA is reimbursed. Jerrod explains the full financial and entitlement impact clearly before you make any decisions.
How does a VA Compromise Sale affect my future VA loan eligibility?›
Your remaining VA entitlement is reduced by the amount the VA paid out on your behalf. Using the example of a $60,000 VA shortfall on an El Paso County property: your remaining entitlement would be $148,187, supporting a maximum no-down-payment loan of approximately $592,748. Loan amounts above that threshold require a 25% down payment on the excess. Jerrod runs these calculations for your specific situation.
What is an FHA Pre-Foreclosure Sale?›
The FHA Pre-Foreclosure Sale (PFS) program is HUD's short sale equivalent for FHA-insured loans. It allows homeowners with FHA loans to sell short with HUD approval when the loan balance exceeds the property value. A successfully completed PFS avoids foreclosure, reduces credit impact and may include a relocation incentive payment. Specific eligibility requirements apply and Jerrod guides FHA sellers through the program requirements.
How is a conventional short sale different from VA or FHA?›
Conventional short sales involve no government agency — approval depends entirely on the private lender or loan servicer's loss mitigation department. There is no standardized program like VA Compromise Sale or FHA PFS. This makes conventional short sales more variable in timeline and outcome but the core benefit remains — a completed short sale is significantly better than foreclosure for your credit and future financing eligibility.
How long does a short sale take in Colorado Springs?›
Timeline varies significantly by loan type and lender. VA Compromise Sales involve both the servicer and the VA Regional Loan Center — typically 60-120 days from listing to approval. FHA PFS timelines are similar. Conventional short sales range from 30 days with cooperative lenders to 4-6 months with slower servicers. Jerrod's active management of the lender communication keeps timelines as short as possible.
How long do I have to wait to buy another home after a VA Compromise Sale?›
The VA itself does not impose a mandatory waiting period after a short sale. However most VA lenders have an overlay requiring approximately 2 years from the short sale closing date before approving a new VA loan. Some lenders may approve sooner if the borrower remained current on the mortgage leading up to the short sale and can document the circumstances. Important exception: if you had no late mortgage payments prior to the short sale and worked proactively with the servicer, some VA guidance allows for no waiting period or a significantly reduced seasoning period — subject to lender approval and underwriting. Every situation is different and Jerrod connects sellers with VA lenders experienced in post-short-sale financing.
What are the waiting periods for other loan types after a short sale?›
If you choose not to use a VA loan for your next purchase, waiting periods vary by loan type. VA loan: typically 2 years based on lender overlay, with possible exceptions for no late payments. FHA loan: 3 years from the short sale closing date. Conventional loan (Fannie Mae/Freddie Mac): 4 years from the short sale closing date. Conventional loan with documented extenuating circumstances: 2 years. Understanding these timelines is an important part of planning your path forward — Jerrod discusses your specific situation and timeline at the free initial consultation.
Is the consultation really free and confidential?›
Completely. Jerrod has worked with homeowners in every kind of financial hardship over 14 years — job loss, divorce, medical hardship, PCS orders and market downturns. Everything discussed is confidential, there is no judgment and no pressure. The goal is to give you honest information about your options so you can make the best decision for your situation.
