VHDA SHORT SALE PROGRAM FOR CONVENTIONAL – UNINSURED LOANS
The last thing you expected when you purchased your home was having problems making your
payments. We realize that no one wants to give up their home. If you have made the decision
that you do not want to pursue other Loss Mitigation options to stay in your home, then this
section outlines VHDA‟s procedure for their short sale program.
Carefully read and understand what is involved. If you need additional assistance, contact a
Loss Mitigation Officer at VHDA by calling 1-888-756-8603.
Definition of a A short sale allows the homeowner the ability to sell the home for less
Short Sale than the full payoff amount on the mortgage. Doing a short sale releases
the lien against the property and prevents a foreclosure on your credit
record.
Eligibility A homeowner requesting a short sale must meet certain requirements as
Requirements follows:
The homeowner must be experiencing or has incurred a VERIFIABLE
FINANCIAL HARDSHIP as a result of circumstances beyond their
control. This may be defined as a job loss, reduction in income due to
hour‟s worked, military transfer, medical situation, divorce and/or the
death of a spouse.
The home must be owner-occupied. There may be times when an
exception to this requirement may exist based on the individual
circumstances of the homeowner. In these cases you will need to
contact a VHDA Loss Mitigation Officer for assistance. In addition,
VHDA expects the homeowner to keep all the utilities on and the
property maintained in good condition.
There must be negative equity in the home value as determined from
an appraisal performed by an independent appraisal company.
VHDA must be able to obtain clear title to the property. There can not
be any liens (including a homeowner‟s association lien), judgments or
second mortgages against the property. If they exist, they must be
satisfied by the borrower before a closing can take place.
The borrower may be required to contribute cash or execute a
Promissory Note to mitigate our losses if a review of the borrower‟s
financial condition indicates the ability to do so.
Information Borrower‟s Financial Package submitted online at
Required for https://carenet.fnfismd.com/vhda/
Participating in Signed Listing agreement
the Short Sale Hardship letter
Program Written authorization to speak with a 3rd party (i.e. real estate agent,
attorney)
Two consecutive and current pay-stubs for each household member
Verification of any other income (i.e. child support, alimony, rent, etc.)
Checking and savings statements for the last two months
Tax returns for the last two years
VHDA Short Sale: Conventional-Uninsured
Effective August 1, 2011
VHDA Short Sale Program Participation Agreement
Steps Involved in In general, the steps described below are followed by you, your real estate
the Short Sale agent and/or VHDA during the short sale process for a conventional
Process uninsured loan. If you want to participate in the program, you must sign,
date and return the short sale participation agreement to VHDA along with
the other paperwork required and indicated on the agreement form. Once
all of the information is received a VHDA Loss Mitigation Officer will
contact you to discuss your eligibility to participate in the program.
1. Homeowner: Sends all required paperwork to VHDA.
a. Borrowers Financial Package
b. Short Sale Participation Agreement – signed and dated
c. 3rd party written authorization, income verification, etc. (see
previous list).
d. Signed listing agreement
2. VHDA: Once VHDA receives the signed Participation Agreement and
signed listing agreement an appraisal of the property is ordered from
an independent company.
3. Homeowner: Selects a real estate agent and sends VHDA their
contact information.
4. VHDA: Notifies real estate agent/homeowner of the amount the
property must be listed for in the listing agreement.
5. Real estate agent: Prepares the listing agreement and sends the
signed document to VHDA. This can be sent via fax or by mail.
6. VHDA: Allows the homeowner to market the property for up to 4
months.
7. Real estate agent: Requests approval for any extensions for
marketing the property thirty (30) days before the end of the 4 month
period. Requests must be received in writing by VHDA.
8. Homeowner: Keeps track of the 4 month timeframe and provides
VHDA with monthly updates on progress. If at the end of the 4 month
period you have not received an offer then you must contact VHDA
and let us know. At that point we may discuss other options that may
be available.
9. Real estate agent: Receives and submits the following to VHDA:
a. Contract offer to VHDA
b. Estimated HUD-1 settlement statement
c. Short Sale Addendum to Exclusive Authorization to Sell (VAR
Form 400-SS 09/09)
d. Short Sale Addendum to Residential Contract of Purchase (VAR
Form 600-SS 09/09)
e. Short Sales: Information for Purchasers (VAR Form 600-G 09/09)
f. Short Sales: Information for Sellers (VAR Form 660-H 09/09)
VHDA Short Sale: Conventional-Uninsured
Effective August 1, 2011
10. VHDA: Contacts the homeowner or the real estate agent to discuss
contract negotiation and/or advises that the contract has been
approved, denied or a counter offer is made.
11. VHDA: Sends the short sale approval letter stating the:
a. Closing date
b. Total amount that VHDA must net from the proceeds
c. Wiring instructions for the disbursement of the funds
d. Any other special instructions that may be needed
12. Settlement agent: Sends VHDA a copy of the signed HUD-1
Settlement Statement so VHDA knows the loan has closed.
13. Settlement agent: Wires the closing proceeds to VHDA.
Forms All forms referenced in this document can be found in the Loss Mitigation
Forms Library on www.vhda.com under the section Homeowners/Short
Sale Program.
Communication Should you have any questions please contact a VHDA Loss Mitigation
and Officer by calling 1-888-756-8603
Documentation
All documentation required by VHDA can either be sent via email, fax or
mail.
Email: lossmitigation@vhda.com
Fax: 804-343-8680
Mail: VHDA – Loss Mitigation Officer – Short Sale
P.O. Box 4627
Richmond, VA 23220
Credit Bureau To better understand how your credit score will be impacted you must
Reporting contact the credit bureaus.
VHDA’s Short The program participation agreement is part of this package. If you want
Sale Program to participate in the program, you must sign, date and return the
Participation agreement to VHDA along with the other paperwork required and
Agreement indicated on the agreement form. Once all of the information is received a
VHDA Loss Mitigation Officer will contact you to discuss your eligibility to
participate in the program.
VHDA Short Sale: Conventional-Uninsured
Effective August 1, 2011