The note isn’t being sold, it’s the property that is being sold (proceeds less than payoff) with lienholders’ approval. And it works like any other short sale except that VARO approval is required in addition to the mortgage servicer. Motivation? Bird in hand theory.
Posted by Ben in Ohio on March 20, 2000 at 07:53:33:
How does a short sale work with a VA loan? The loan is backed by the VA so why would there be an incentive for the note holder to sell the note at a discount?
Usually there is a lender foreclosing a VA insured loan. I have run into one where it is the USA filing on the defendant as opposed to the lender filing. What do you make of this? Thanks! BR