What qualifies as financial hardship for a VA Compromise Sale?›
Acceptable hardships include significant income reduction, job loss, unexpected medical expenses, divorce or separation, death of a spouse and — critically for Colorado Springs military families — PCS orders requiring relocation while underwater on the loan. You do not need to be behind on your mortgage payments to qualify. PCS orders alone are recognized as a qualifying hardship. Jerrod reviews your specific circumstances during the free initial consultation.
Do I have to be behind on my mortgage to qualify?›
No — and this is one of the most important things Colorado Springs military families need to know. PCS orders that require you to relocate while owing more than your home is worth are a recognized qualifying hardship. You can pursue a VA Compromise Sale while current on your payments. In fact being current on your mortgage may actually improve your outcome — some VA guidance allows for reduced or eliminated waiting periods for borrowers who remained current throughout the process.
Will the lender approve a sale that has only been on the market a short time?›
Yes — there is no VA-mandated minimum days on market requirement. Jerrod has successfully closed VA Compromise Sales where the property had been listed for less than a week. What matters is that the sale price is credibly supported by market evidence. A C-REPS certified market analysis with strong comparable sales documentation gives the lender the confidence they need to approve the transaction regardless of how long it has been listed.
Why are lenders generally cooperative with VA Compromise Sales?›
Because the VA already guarantees 25% of your original loan amount. When the VA covers the shortfall on a compromise sale, the lender is effectively made whole or very close to it — there is very little actual lender loss. The 84.05% minimum net proceeds requirement means lenders recover the vast majority of the loan balance, and the VA covers the rest. This is why VA Compromise Sales are generally more lender-friendly than conventional short sales.
What is the 84.05% rule?›
The VA can accept as low as 84.05% of the VA-appraised value as minimum net sale proceeds in a compromise sale. This means the sale can close below appraised value — as long as net proceeds meet the minimum threshold. Individual servicers may have overlays requiring a higher percentage, commonly 88% or more. Jerrod structures the pricing and documentation strategy to meet the specific servicer requirements for your loan.
Will I owe money after a VA Compromise Sale?›
In most cases today — no. VA policy has evolved to routinely grant pre-foreclosure debt waivers and releases in approved compromise sales. Most VA-approved compromise sales are structured so the veteran or active duty service member is released from personal liability for the deficiency, subject to the terms of the approval. The shortfall becomes unrestored entitlement rather than a personal debt obligation in most cases.
How does a VA Compromise Sale affect my future VA loan eligibility?›
Your remaining VA entitlement is reduced by the amount the VA actually paid out — not the full amount originally used. Using the example above: a $60,000 VA payment results in $148,187 of remaining entitlement supporting a maximum no-down-payment loan of approximately $592,748 in El Paso County. Jerrod calculates your specific remaining entitlement before you proceed so you can plan your next purchase with complete information.
How long does a VA Compromise Sale take in Colorado Springs?›
Typically 3-6 months from listing to closing, depending on the servicer. Some servicers process approvals in 60-90 days; others take longer. Active agent management of the lender process is the single biggest factor in keeping the timeline on track. Jerrod follows up consistently, responds to documentation requests immediately and escalates delays — this hands-on management is what separates a smooth compromise sale from a frustrating one.
Can I buy another home after a VA Compromise Sale?›
Yes — and with more buying power than many veterans realize, as the entitlement calculation above shows. The VA itself does not impose a mandatory waiting period after a compromise sale. Most VA lenders have an overlay requiring approximately 2 years before approving a new VA loan, though borrowers who remained current on their mortgage and can document their hardship circumstances may qualify sooner with some lenders. Jerrod connects post-compromise-sale sellers with VA lenders experienced in these situations.
Is the consultation really free and confidential?›
Completely. Jerrod is currently working multiple VA Compromise Sales in Colorado Springs and understands this situation from a genuine hands-on perspective — not just theory. Everything discussed is confidential, there is no judgment and no pressure. If a VA Compromise Sale is the right path for your situation, Jerrod will tell you. If it is not, he will tell you that too.
