What Happens When A VA Mortgaged Home Goes Into Foreclosure?
Is it the same procedure as conventional and FHA?
Could one just make back payments and assume a VA loan without qualifying? (i think i heard that you don't have to re-qualify?)
An assumption arrangement in which the seller conveys title to the property to the buyer and moves out while the buyer moves in and makes payments on the old loan.
The lender does not approve the buyer's credit and income, so the deal may be called a no approval loan. However, the seller remains liable on the old loan under such circumstances. Only loans without strong "due on sale" clauses are assumable without approval. This includes VA loans made before March 1, 1988.
During this time frame, you can avoid due-on-sale issues, You can assume the loan without credit approval and you can take over the loan by paying a simple fee.
All purchase offers must be on the following VA forms:
Offer to Purchase and Contract of Sale (VA Form 26-6705)
Credit Statement of Prospective Purchaser (VA Form 26-6705b)
All purchase offers must be submitted through a licensed real estate broker. VA does not 'approve' real estate brokers.
VA foreclosures work basically just like any other foreclosure as directed by state and federal law.
[addsig]
"All purchase offers must be submitted through a licensed real estate broker. VA does not 'approve' real estate brokers."
Meaning I cannot complete this transaction between just myself and the homeowner? (like a FSBO)
What do you mean that VA does not approve brokers?
Thanks!
If you are going to pay the full amount of VA's balance not a problem.
If you plan to discount the note, I would suggest using a broker as they have been a great help in the VA process.
Sorry I did not know you were paying cash?
Quote:
On 2005-01-10 15:15, telebroker wrote:
"All purchase offers must be submitted through a licensed real estate broker. VA does not 'approve' real estate brokers."
Meaning I cannot complete this transaction between just myself and the homeowner? (like a FSBO)
What do you mean that VA does not approve brokers?
Thanks!
[addsig]
I'm not sure what to do right now.. The homeowners live out of town- they have a VA loan- they want some money for their equity- the house is partially vandalized. ..I've never done a deal (yet!)
By the way when you say discount, are you referring to a short sale? I wasn't aware that was possible for VA's..
telebroker
On occasion I choose A forum member and help them through a deal from the beginning to the end so if you are ready let's get it on.
We need to keep most of it on this forum. However, some details we will need to not post to protect your potential investment.
So, let me know if you are ready to play.
[addsig]
Is it necessary to use the listing broker for a VA foreclosure or is it possible to use the broker that you have always used?
You can use any broker in your state. The VA homes are now listed on multiple listing service. They are managed by a bank out of Florida and India.