Advice please on VA forclosure - Posted by Ted Trunnels

Posted by NJDave on June 24, 2000 at 16:21:04:

A compromised sale would be an appropriate option if 1) title to the property was still held by the foreclosed homeowner, 2) the mortgage balance exceeded anticipated proceeds from sale, and 3) a qualified, third party purchaser were ready to purchase the premises to be sold in an as-is condition.

A VA compromised sale is an agreement between the mortgage loan servicer, the VA, and the delinquent/foreclosed borrower.

In a compromised sale, under certain circumstances, the mortgage loan servicer and the VA would agree to accept less than the amount that they are due. In exchange, the Borrower is allowed to sell the premises to a third party. The Borrower would receive ZERO proceeds from the sale, and future VA eligibility would be suspended.

Advice please on VA forclosure - Posted by Ted Trunnels

Posted by Ted Trunnels on June 24, 2000 at 10:01:42:

Good day to all. I’m still looking for first deal and may have a possibility. I found a vacant, run down home in a nice area. It’s an older home that needs a lot of work. This home has been forclosed on by the VA. Anybody have any suggestions on how to handle this deal?

Re: Advice please on VA forclosure - Posted by Mark

Posted by Mark on June 25, 2000 at 08:06:08:

My wife & I just closed on (and successfully rent w/positive cash flow!) a VA foreclosed house in Saluda, VA.

We watched bid, rebid and finally closed over a 7 month period! Government moves SLOW!!!

MAKE sure the VA is aware day-one that you are planning to rent this house out NOT occupy (IF I understood you correctly)

Hold out for NO Investor Down-Payment (If no competition for property!) We were dealing with a house that originally expected us to put 5% down (if I remember right) plus 2.5% Loan Origination Fee. We waited and finally got the VA to forego the Investor Down-Payment. That helped!

Watch their WEB site! I logged on there almost daily for updates!

Let me know if you’d like more details of our experience. I’ll buy another one from VA if one becomes available in my area!

One more thing, I WISH I knew about this when I was looking to by MY first home to occupy! It even a sweeter deal for Owner Occupied! BUT Don’t monkey with them on that! You can’t BS them, penalty is STIFF!


Re: Advice please on VA forclosure - Posted by dan

Posted by dan on June 24, 2000 at 12:19:25:

choose the appropriate city to go to their web site. it should show you property listing and previous sales. the va will set a price but you can bid more or less. i would check previous sales to see if there is a lot of competition for properties which would neccessitate a higher bid. the va provides investor financing that is very good. you can get a 90% ltv non-owner occupied loan (one loan - not a first and a second),pay no pmi on the loan, and get a competitve rate. with the va’s funding fee and closing costs, you usually have to come up with 13-15% total out of pocket and usually close in 21 to 30 days once all the conditions are met. contact a local agent that deals with va’s - he/she can prepare your offer and other paperwork for the loan. find an agent that has worked with investors so they no what it is you are trying to do.
good luck

determine status of foreclosure - Posted by NJDave

Posted by NJDave on June 24, 2000 at 11:44:38:

assuming that the VA insured mortgage loan has been foreclosed, (1) has the foreclosure process been completed, and 2) is the property an REO.

If there is NO ‘for sale’ sign, you could contact the town’s tax collecter to determine if there has been a change in title. If there is no indication that there has been a change in title, you could call the appropriate authority (sheriff, trustee) to determine if the property had been exposed at public sale pursuant to foreclosure proceedings.

You can try to contact the last known owner of record and ask. If the property is in foreclosure but not yet an REO, you may be able to negotiate a favorable acquisition price via a VA approved compromised sale.

Re: Advice please on VA forclosure - Posted by CarolFLUT

Posted by CarolFLUT on June 24, 2000 at 11:24:32:

In our area VA foreclosures are handled by a local office. It takes forever and a day for them to get on the list, but once they do, they are listed w/ that broker and in mls. They are also online. Bids are open to owner occ and investors, w/good investor financing if you get the bid. Find a broker who specializes in VA, however, cause the contract calculations are “special”.

Re: Advice please on VA forclosure - Posted by CHRIS ADKINS

Posted by CHRIS ADKINS on June 25, 2000 at 22:49:16:


Re: determine status of foreclosure - Posted by Dave T

Posted by Dave T on June 24, 2000 at 14:21:26:

Would you please tell me more about a VA compromised sale? Is this the VA name for a “short sale”?

Re: Advice please on VA forclosure - Posted by Paul

Posted by Paul on June 25, 2000 at 23:20:46:

Mark, how long has the property been listed? if its new and not listed before AND you can wait, I would cause VA will drop the price (at least here in Virginia) if not or the property is in demand I’ve successfully bidded 92% of the asking and boom I own it. Good luck