One of my regular listings will probably need to go short sale. Divorce situation, been on the market for 95 days and keep doing price reductions, last payment was made in August. However, it is a VA loan. Seller talked to someone with VA and they have not heard from mortgage company yet. The person at VA talked to seller about doing workout program. My questions are, with VA loans: 1. Do they have to try a workout program first before a short sale will be considered? 2. Does VA allow short sales?

I don't think they have to do a workout program first and yes VA will do a shortsale. Offers need to net Lender 88% of VA appraisal. VA loans before 12/31/1989, the seller needs to sign a promissory note. Contract must be contingent on approval of VA compromise.