(Short Sales and VHDA Loans) Prior Tucker Tips have discussed that short sale negotiations continue to be difficult and still take way too long to obtain an approval. There are a few exceptions to this case - individual private lenders, some credit unions, hard money lenders, and now VHDA.
VHDA is one of the few institutional lenders which will try to complete the short sale negotiations within a sufficient time to meet the contract terms, including a reasonable closing date. VHDA will appoint a negotiator immediately and order an appraisal. The negotiator is usually very responsive and actually returns telephone calls and emails. Possible problems with VHDA negotiations include they are usually very strict on what expenses they allow to be paid our of the sales proceeds and what can be paid to a second lender. Furthermore, they will only pay a maximum of five percent (5%) real estate commission.
All in all, VHDA is an excellent lender to work with on a short sale. Too bad other lenders have not adopted some of VHDA’s attitudes and approaches.