Whether it's a traditional short sale, or a Fannie Mae/Freddi Mac there are guidelines that need to be met for a short sale to be successful.  A VA backed loan is no different. The VA itself doesn't loan money for mortgages. The VA guarantees a portion of a veteran's mortgage loan.   When you walk away from a VA-guaranteed mortgage, you often lose a portion of your eligibility for a future VA mortgage. There's a two-year minimum wait for restoration of VA-guaranteed mortgage eligibility after a VA mortgage foreclosure. However, if the VA's loss on your foreclosed mortgage wasn't recovered completely, you'll only receive partial restoration of your VA mortgage eligibility.  For more information visit US Dept. of Veterans Affairs