Joint Base Charleston Real Estate

Joint Base Charleston - Good News About Short Sales

June 25th, 2012 8:39 AM by

PCSing Charleston military homeowners current on their mortgage can now qualify for a short sale without taking the typical credit hit. Military families received good news last week as the federal government said borrowers forced to move as a result of military orders do not have to be delinquent to qualify for a short sale.

Lenders are generally against short sales because they force the bank to take a loss, so they want to ensure there are no other solutions available. Most often, a lender will only allow a short sale if the borrower is delinquent on the mortgage.

The problem is that not all JointBase Charleston borrowers are behind on their mortgage payments, and they may have the ability to continue monthly payments. However, the fact remains that sometimes the property may not be worth the property what is owed – and so a short sale is the only option.

The past requirement of forcing Charleston military owners who have the ability to pay their mortgage to skip one or more payments, in order to become ‘delinquent’ and become eligible for short sale – essentially ruins their credit as a condition of getting the short sale. Of course, once a payment has been missed the lender is not obligated to accept a short sale offer and could even try to foreclose on the property.

Thankfully, Washington has established a new standard for military homeowners - According to the new rules, lenders and loan servicers cannot tell military homeowners with PCS orders who are current on their loans “to intentionally skip making payments in order to create the appearance that they are having financial difficulties in order to obtain assistance for which they would not otherwise qualify.”

In other words, a lender cannot tell JointBase Charleston borrowers that a short sale will be considered only if monthly mortgage payments are missed when the borrower has the ability to make such payments.

The rule also says that lenders cannot ask military homeowners with PCS orders to waive their rights under the Servicemembers Civil Relief Act (SCRA) or any other law before they will provide loan option information or evaluate the homeowner’s eligibility for assistance.

For details visit the Consumer Financial Protection Bureau.



Military Homes Charleston
We specialize in helping military families enjoy a smooth PCS in and out of Joint Base Charleston, South Carolina. Buying and selling your home is one of the biggest events of your life. As your trusted Charleston Real Estate Professional, we are 100% committed to helping you the best way we can when you buy or sell your home. We have a passion for helping people, and we love what we do – call 843-410-8014 or email today!

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Posted by on June 25th, 2012 8:39 AM

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