VA Loans And Short Sales

For many years, VA loans have been used by numerous military personnel past and present to obtain home ownership. Considered to be one of the U.S. government’s most successful ventures, the VA loan program has allowed many people to obtain homes for pennies on the dollars via short sale. In today’s real estate market, VA loans and short sales go hand-in-hand, although the procedure can offer both advantages and disadvantages.

Why Use a VA Loan?
In addition to allowing military personnel the opportunity to experience home ownership, a VA loan has a number of other advantages. When purchasing a short sale home, those advantages can include:

  • Zero cash down on some home purchases
  • Low interest rates
  • Up to six percent of closing costs paid by seller
  • No penalties for early or pre-payments
  • No monthly mortgage insurance premiums

In addition to these advantages, no further credit underwriting is needed by the VA when it comes to VA loans and short sales.

Hurry Up and Wait
While there are many advantages when it comes to VA loans and short sales, there are some disadvantages as well. Perhaps the biggest is the gap between the time an offer is made on the property and when the seller chooses to reply with an acceptance or counteroffer. In some cases, the potential buyer can wait 60 days or longer, during which time interest rates can possibly go up. In addition, the VA will not guarantee a property unless its living conditions are safe for occupancy and the sale price is justified.

Buyer Beware
Just like purchasing a used car or other big-ticket item, many homes purchased through VA loans and short sales carry a large amount of risk with them. Most homes that are close to going into foreclosure and wind up as short sales are sold “As Is” to the buyer, which can be both a blessing and a curse. While the price may be bargain-basement, the repairs needed to bring the house back to respectability may be substantial. In fact, some short sale homes are purchased sight unseen, which can be an extremely risky venture. To be safe when it comes to combining these loans and short sales, an inspection of the property should be done prior to any purchase being final.

The Perfect Combination
While there are always risks involved when purchasing real estate, those buyers who combine VA loans and short sales often have much success. The ability to purchase a home at a much lower price than market value, along with needing little if any money down makes the process well worth the time and effort it takes.

Virginia Tax Debt Relief

The amount of money that you owe to the IRS varies from year to year, and this can make it difficult for taxpayers to estimate and plan for their tax bill. While you may have taxes withheld from your paycheck regularly, other factors related to the deductions you qualify for, your tax rate, if you sold a home or other assets and more can all potentially result in a much higher than expected tax bill. If you are currently facing a huge IRS bill that you are unable to pay, Virginia tax debt relief may be available.

Virginia Tax Settlement
When you fail to pay your tax bill to the IRS, you may face penalties related to monetary fines, wage garnishments, levies and even imprisonment in some cases. Virginia tax debt relief is available to help you settle the debt and move on with your life. While there are different strategies that a debt relief company may recommend based on your unique situation, an offer in compromise is a top solution. With an offer in compromise, the IRS may agree to accept hundreds or even thousands of dollars less than you actually owe, and you may never have to pay the remaining balance to the IRS.

How an Offer in Compromise Works
Virginia tax debt relief can help you to re-establish solid footing with your finances, and an offer in compromise is a popular option that works well for many. However, there are requirements and strategies that are more effective for taxpayers to use, so those who are interested in this type of Virginia tax debt relief may seek professional tax debt services for the best results. With an offer in compromise, you must formally make a request to the IRS and must provide solid reasons why the IRS should accept the offer. Your tax debt company can assist you in preparing this request.

While the IRS could turn down the offer in compromise request, many will find that this type of Virginia tax debt relief is highly effective. The consequences associated with not paying your taxes to the IRS are serious and significant, and you should take time to explore debt relief options as soon as you realize that you are unable to pay the full amount owed. If you would like to explore debt relief options in greater detail, contact a tax debt service company for personalized information about your options.

Foreclosure Process In Virginia

If you have become delinquent with your mortgage payments and have received notice that your property may be foreclosed on, you may be wondering what the foreclosure process in Virginia entails. The process can vary slightly from location to location, so it is important to understand what the process is and what stage in the process you are currently in. By doing so, you may learn more about any options that are currently available to you through this process.

The Power of Sale Clause
Most mortgages are initially signed with a special clause in the wording known as a power of sale clause. This clause has specific notice requirements that must be followed before the foreclosure. For example, the foreclosure sale must be advertised in a specific interval over the course of one to two weeks in a local newspaper. The advertisement must also be served to the property owner 14 days before the sale is to occur. There also rules regarding when the actual sale can occur that property the property owner’s rights. Under the power of sale clause, the property can be auctioned off to the highest bidder. The bidder must make a cash deposit of at least 10 percent of the bid.

A Judicial Process
The power of sale clause option is a non-judicial option, but there is also a judicial option for the foreclosure process in Virginia. With this process, the property will be sold in a publicly noticed sale, and a local sheriff usually facilitates this process. This type of judicial process usually includes a lis pendens being recorded against the property.

The Time Frame
The typical foreclosure process in Virginia takes approximately 60 to 90 days. While some will walk through this process, others may want to avoid foreclosure. A short sale is an alternative to a foreclosure. It essentially means that the owner is selling the property for less than what is owed to the lender. The lender must agree to the short sale beforehand. While a short sale can impact the credit of the property owner and result in a loss for the mortgage holder, it may be a more attractive option than the alternative for both parties.

If you are facing a foreclosure, understanding the foreclosure process in Virginia is important. You may consider working with a real estate agent and an attorney to learn more about how you can avoid foreclosure and minimize the impact to your credit rating.

Steps To Getting a Divorce in Virginia

While the decision to file for divorce may not have been an easy one to make, you may now be ready to move forward with this plan. Filing for divorce can seem overwhelming and confusing, but by understanding more about the steps to getting a divorce in Virginia, you may be able to more easily move forward with this process. After you have determined that you meet the residency requirements for filing for divorce, you can move forward with the other steps to getting a divorce in Virginia.

Make Decisions about the Divorce
In Virginia, you can file for a full or partial divorce. With a partial divorce, you will live separately, but you will not be permitted to marry other people. You must also determine the reason for filing for divorce, such as cruelty, abandonment or other reasons.

Calculate Child Support
There are additional steps to getting a divorce in Virginia if you have children. You will need to calculate how much child support should be paid to the parent who will have primary custody, and there are forms available through the state to facilitate this calculation. The couple may also attempt to agree on child custody on their own outside of the court.

Divide Your Assets and Debts
If a couple can agree on how to divide assets on their own then this may be a better overall solution than allowing the courts to do it. The couple can attempt to sell items that they no longer need or want. For example, it is common for a divorcing couple to sell the home and some of its contents. The money may be used to reduce or eliminate debts, and this often can simplify the task of dividing assets and debts.

File the Forms
The final steps associated with filing for divorce in Virginia relates to completing the required forms and filing them. The forms are generally filed through your local County Clerk’s office. The forms will also need to be officially served to your spouse. A hearing will be scheduled, and the divorce typically will be finalized after a final Divorce Decree is filed with the County Clerk’s office.

There are some instances when a partial divorce may be granted immediately, but most will need to follow these steps to getting a divorce in Virginia. You may work with a lawyer to complete the process or for legal representation.

Legal Advice On Short Sales

If you’ve found yourself in a difficult situation when it comes to your mortgage and you’re considering foreclosure, rest assured you have a better option. A short sale or pre-foreclosure sale is an agreement between you and the mortgage company that you will sell your home for less than the balance remaining.

You should consider this option if:

  • You’re behind on payments
  • Your home is worth less than you owe
  • You haven’t been able to sell your home
  • You’re having financial difficulties
  • Refinancing is not an option

It’s true that foreclosure has a negative effect on your credit, so it is best to avoid it if you can. Not only that, you can see the bank coming back at you years later to recoup the amount you still owe on a past mortgage. They can take legal action and dock your pay to get the owed amount back.

Though a short sale may take up to 120 days, the benefits are worth it. Not only will you be able to sell your home at or around market value, when you seek legal advice on short sales from a professional, you’ll be able to agree upon the price with the bank and buyers and discover other helpful options to ease the stress.

Some acceptable reasons for a short sale include, but aren’t limited to:

  • Job loss or reduced income
  • Military service
  • Death
  • Medical bills
  • Divorce or separation
  • Incarceration

Because there are plenty of legalities involved that the average home buyer or seller won’t understand, your smartest decision is to work with a Corporate Counsel like Michael Benmira for legal advice on short sales. You want to be in the know about all the best options currently available to you during the process. In some cases you can even get help relocating, which is a burden many face after the final sale.

Don’t fall prey to the banks. Get help with negotiation of deficiency debt and come to an agreement that benefits you and your particular needs. Have help with hardship letters, current tax rules, and more. In addition, working with an individual who is CDPE, or a Certified Distressed Property Expert means that you have help from someone who understands all the complexities and give the best legal advice on short sales.

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