The U.S. Department of Veterans Affairs (VA) has authorized servicers to advance $1,500 in relocation assistance to borrower occupants who complete a short sale with a VA compromise claim or who execute a deed-in-lieu of foreclosure (DIL).
According to VA Circular 26-11-1, the VA expects servicers to proactively notify eligible borrowers of available foreclosure alternatives, such as short sales and DILs. Servicers are also expected to encourage the completion of a short sale or DIL by providing borrowers with written agreements describing the requirements for receipt of a relocation assistance.
With DILs, the agreement must specify that the subject property be unencumbered by other liens and be left in broom-swept condition.
SOURCE: U.S. Department of Veterans Affairs
