Help! VA, FHA Etc.
Found a few properties being offered by VA (Vets Admin). Notice all are listed with brokers. Can one still do a deal to buy these at less than being offered for?
Found a few properties being offered by VA (Vets Admin). Notice all are listed with brokers. Can one still do a deal to buy these at less than being offered for?
Absolutely! The same techniques used in a preforeclosure short sale would be transferable to your proposal to purchase an REO at a discount.
Around here, the VA-owned homes are pretty much the same as any other home listed for sale. The forms are different, and you're negotiating with a bank instead of a person.
There's no concept of a short sale here - the VA owns them outright. The amount of the loan involved in the foreclosure is ancient history by the time it gets listed on the MLS.
Quote:
On 2004-02-11 14:23, TheShortSalePro wrote:
Absolutely! The same techniques used in a preforeclosure short sale would be transferable to your proposal to purchase an REO at a discount.
Your folks have me confused now.
The ShortSalePro you can do a short sale. Now the next reply states, forget any short sale opportunity since the property is now listed with a broker.
This gives rise to anothe question. If the VA property is now listed with a broker. Is the asking price current market value or the amount the VA has at risk?
Being a Newbie, learning to love to this site.
There isn't a difference between who owns the property. You can bid or offer whatever you want. Of course you would do the research before you make an offer to know what the property is worth. Once you make an offer it is either accepted, countered, or declined totally.
Lori
[addsig]
Quote:Your folks have me confused now. The ShortSalePro you can do a short sale. Now the next reply states, forget any short sale opportunity since the property is now listed with a broker.
This gives rise to anothe question. If the VA property is now listed with a broker. Is the asking price current market value or the amount the VA has at risk?
Don't be confused here at all. Just keep asking your questions.
jamespb read your question and interpreted it the same way that I do. I disagree with the response you received from ShortSalePro, since it implies that you can still execute a short sale. When the property is offered by the VA, it is now owned by the VA free and clear. There is no mortgage to negotiate for a short sale, the foreclosing lender is out of the picture -- the foreclosure has already occurred. VA owned properties are offered for sale through listing brokers. You must use a VA approved broker to submit a bid on the property.
You are free to offer any amount you wish, but the process is a sealed bid auction. There is no negotiation, no counteroffer. The sealed bid that results in the highest net proceeds to the VA is either accepted, or, the property is relisted for sale.
In my experience, VA owned properties are usually offered at or near FMV, though the condition of the property is supposed to be taken into consideration and reflected in the list price.
[ Edited by DaveT on Date 02/12/2004 ]
All Star Investor, Thank you for your succincly articulated response. Gotta love folks from SC since Charleston is one of my favorite cities to visit.
Thanks again. To all of you out there. I'm truly amazed how much I have learned in just about one week in visiting this site.
I don't know if this helps but when I bought a VA repo (thru a realtor as it was listed), I initially offered $20,000 on a property that was listed for $25,000. I had $500 earnest money as part of the contract. According to the realtor the VA then basically freezes the property from the market and reviews my(any) offer. A couple of weeks later I was informed that they declined my offer and it once again came up on the open market at $22,500. I then offered $18,500, (with $500 down, etc). This offer they accepted! I put $10,000 into the deal and sold it for $57,500.
To those that are confused by my previous post... please re-read it.
The same techniques that are used to effectuate a short sale can be used to negotiate a discount from the stated asking price.
The essence of short sale has LITTLE or NOTHING to do with the amount due on the loan. It's predicated upon the as-is, fair market value of the subject property and how best to mitigate potential losses.
Demonstrating to the owner (compelling, factual proposal) that it is in their best financial interest to accept your Offer to Purchase is essentially the same as negotiating for a mortgagee approved short sale.[ Edited by TheShortSalePro on Date 02/13/2004 ]