We have a VA backed loan. If we do a short sale due to hardship, do we have to repay the difference?
2010 July 27
Due to hardship and job relocation, we are having to sell our house. Its a VA loan and have been told a short sale is the best route. BUT, do we have to repay the difference from the actual sale price and the amount owed on the home?
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When you do a short sale, the bank has to accept the lower amount, that’s why it’s called a "short" sale.
Sometimes, the bank will insist on a promissory note for the balance, but that’s rare.
If you give me some information, I will see if I can help.
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