There is a dangerous rumor floating around the base, and unfortunately, it is hurting good families.

We hear it almost every time we sit down with a new client. They sit across from us, looking exhausted, and say:

"I wanted to call you three months ago, but my buddy told me the bank wouldn't talk to me unless I was behind on my mortgage. So, I stopped paying."

This is the single biggest misconception about VA Short Sales.

And waiting until you are delinquent doesn't help you—it only hurts your credit score. Here is the truth about VA Short Sales that most people (even some agents) don't know.

The Myth: "I Must Be Delinquent to Get Help"

The logic seems sound: Why would the bank help me if I’m still paying them on time?

Many people believe that in order to prove "hardship," they have to prove they are broke. They think they need to force a crisis to get the lender's attention.

The Truth: The "Imminent Default" Rule

The Department of Veterans Affairs is smarter than that. They understand that military life is unpredictable.

The VA guidelines recognize something called Imminent Default. This means that even if you are current on your payments right now, the VA acknowledges that you will not be able to keep up with them in the near future due to a specific hardship.

Common "Imminent Default" Scenarios:

• PCS Orders: You are moving to California, and you cannot afford the mortgage in Jacksonville and rent at your new duty station.

• Divorce: The household income is being cut in half.

• loss of Income: A spouse lost their job or you retired with a pay cut.

If you have PCS orders and your home is underwater (you owe more than it’s worth), you do NOT have to miss a payment to apply for a short sale.

Why Waiting to Call Us is Dangerous

If you wait until you are 3 or 4 months behind just to "qualify," you are doing unnecessary damage to your financial profile.

1. Credit Score Impact: A short sale has a much smaller impact on your credit if you have fewer missed payments leading up to it.

2. Security Clearance: Security investigators look for patterns of financial irresponsibility. Ignoring a debt until it goes to foreclosure looks irresponsible. Proactively contacting a specialist to resolve a debt because of a forced move (PCS) shows responsibility.

3. Stress: Living in fear of the collection calls is stressful. You don't need that while you are trying to pack for a move.

The "Security Clearance" Fear

This brings us to the second part of the myth: "Will this ruin my clearance?"

While we cannot give legal advice, we have helped countless service members with Secret and Top Secret clearances navigate this process. Generally speaking, the Department of Defense is concerned with unmitigated debt—debt you are ignoring or hiding.

A VA Compromise Sale is a legal, negotiated settlement of debt. It is a solution, not a problem. A foreclosure, on the other hand, is a much bigger red flag.

The Bottom Line

If you know the math doesn't work—if you know you can't sell the house for what you owe, and you can't afford to rent it out—do not wait until you miss a payment.

Call us the moment you get your orders. We can build your file based on "Imminent Default," get the process started while your credit is still intact, and help you transition to your next duty station with your head held high.

Don't listen to the barracks lawyers. Get the facts.

Schedule Your Confidential Consultation Today

You DO NOT have to be behind on payments to get help.