PCS Orders and No Home Equity? What San Antonio Military Families Can Do

Your orders say you report in a few weeks. Your mortgage says you owe more than the house is worth. And somewhere along the way, someone told you that you cannot sell a home you are upside down on.

I hear this story often in San Antonio, which is home to a large military community. I am Betsy Nava-Flores of Harvest Real Estate Group, and I hold the Military Relocation Professional designation. This is not legal or financial advice, and I cannot guarantee any outcome. What I can do is show you the paths that exist, so you can choose one before the clock runs out.

Everything depends on what you owe and what the home would sell for today. Your servicer, the company you send your payment to, can give you the payoff amount. For the second number, ask a local agent to walk the home and price it from recent sales, not an online estimate. I give a free home value with no obligation. Then subtract the cost of selling, which includes commission and closing costs, so you see the real gap. If the gap is small, you may be able to cover it from savings or a family loan and sell the usual way. If the gap is large, the paths below matter more.

Call your servicer the day you have your orders, and send a copy when they ask for it. Ask what options and protections exist for service members. Some federal protections for service members may apply to your loan, especially if it started before you went on active duty, so ask about them directly. Your installation's legal assistance office can review your situation for free, and Military OneSource can point you to other help. Both are worth a call this week.

• Sell the home. If the sale price covers your payoff and the costs of selling, this is the cleanest route.
• Ask for a short sale. When you owe more than the home is worth, your lender can agree to accept less than the full balance. It needs their approval and it takes time, so it only works if you start early. It is never guaranteed.
• Rent it out. Many military families keep the home and rent it while they are away. Add up the mortgage, taxes, insurance, repairs, and a property manager's fee, and compare that to realistic rent. A VA loan generally expects you to live in the home at first, and a PCS move is a common reason to rent it afterward, but confirm that with your lender. I manage rental properties myself, so I can run these numbers with you.
• Ask whether your loan can be assumed. VA and FHA loans can often be taken over by a qualified buyer with the lender's approval. In the right situation, that can be a selling point. Ask your servicer if yours qualifies.

Write these down before you call, and write down every answer:

• Do you have a program for service members who have received orders?
• If I list the home, will you review a short sale at the same time?
• What documents do you need from me, and how fast do you respond once I send them?
• Who is my single point of contact, and how do I reach that person directly?
• Is my loan assumable by a buyer?

Clear questions get clear answers, and a written record protects you if anything changes along the way.

1. Call your servicer and send your orders.
2. Get the payoff amount, and get the home priced by someone who has walked it.
3. Call the legal assistance office on your installation.
4. Decide between selling, renting, and a short sale, using the real numbers.
5. Talk to an agent who has done this before, before you sign anything.

When a move is coming fast, offers appear. Be careful with anyone who asks for money up front to solve the problem, tells you to stop speaking with your lender, or asks you to sign over the deed. Ask for everything in writing.

If you are not sure where you stand, call 210-889-7495 or use the contact page. The first conversation is free, nothing is shared with your lender without your say-so, and I will tell you directly what I see, including when keeping the home is the better move. You can also read more about selling when you are facing foreclosure and about VA and military buyers, for when you are ready for the next home. I serve San Antonio and the Hill Country towns around it.