Short Sale, Periodic Reinvestigation, Etc


#1

I conducted a short sale on my home back in 10/2012. I was 30 days late on mortgage in 9/2012. Home sold in 10/2012. After that, I rented a home for two years prior to purchasing my current home with a VA Loan.

I only had one occasion where I was 30 days late. I did not disclose on my SF86 because it only asked for 120 days late. At the time I did my short sale, I informed my company’s security office who recorded it. By the time my reinvestigation took place, I had switched employers. I kept the emails where I notified my previous employer.

During my interview, the interviewer asked about it and why I didn’t disclose it on my sf86. I was honest like above as the sf86 didn’t mention 30 days and I had also informed my employers security folks at the time. Nothing to hide.

Meanwhile, after I had submitted my sf86, I had encountered suspicious activity and promptly reported it to my employer while I was doing college recruiting. It wasn’t on my sf86 but during the counter terrorism questions, I felt the need to disclose it.

I am current on all debt and live within my means. I have plenty of cash savings and 401k.

Did I do everything to mitigate any concerns for an adjudicator?


#2

Hi Compsci,

I am not sure why the investigator asked why you did not report the short sale, unless that was something required during the course of your employment. If the questions on your background forms do not ask for a specific item (e.g. fines under $200) then you are not dishonest in failing to disclose a $120 ticket, or short sale in your case. In other words, there is no requirement to enter information past what the SF-86 requires.


#3

They pulled my credit report and the note on it said something to the effect of “Paid and settled for less than owed” which is standard Short Sale nomenclature. I had to explain it. It wasn’t a default


#4

Can’t say for sure, but my guess is that investigators ask about things that find, which may be out of scope, in order to ensure that there is not more information which would bring the item into scope.


#5

Thanks for the response. After I sold my home, I rented for two years with no lates on a home and new mortgage for three years.


#6

Follow up for anyone wondering the same in the future.

My clearance was renewed and the short sale had no effect.


#7

Investigators are supposed to discuss any known issues - even though developed through a credit report that might not fit into a reportable category. If your event, in this case a short sale, did not fit into a reportable event, answer the questions and ensure the investigator knows you did not report the event because it was not an EQIP reportable event. Your investigator should already know that event was not reportable - it is the cause/underlying reason for the event they are llooking at/ reporting.


#8

Thanks and that is exactly what I said back then. It did not fit and that is why I did not report.