Posted by John Burley on February 04, 2003 at 20:48:11:
I have personally been involved in over 1,000 VA Loan transactions. Both direct acquisitions from the VA and Mirror Wraps.
In many states VA Repo’s are sold on a Land Contract, Installment Contract, etc. basis. Thus, the lender is the Legal Title Holder. With that said, all exisitng VA loans may be transferred on a Land Contract, Installment Contract, etc. (the transfer of equitable title) WITHOUT being in violation of the DOS.
That would be the preferred way, as opposed to assuming (with full qualifying)this transaction, in my opinion.
We have found a property with a VA Mortgage that we want to rehab and flip a few months later with a double closing. Since the deed is held by a trustee with Bankers Trust of CA, we cannot buy the property “Subject To” and take the deed from the homeowner. Should we use a land contract with the homeowner? If not, what would you suggest? Thank you!
Re: VA Mortgage/deed held by trustee - Posted by Alex@CO
Posted by Alex@CO on January 18, 2003 at 20:14:40:
Pardon me… but if the property is already secured with bankers Trust of CA as a trustee, doesn’t it say that the property has already been foreclosed. If it is the case, the oroginal homeowner no longer owns the property legally. It’s too late to talk to or do anything with the homeowner who is no longer the homeowner.
You should treat this property as a REO property, or VA-owned property because VA Mortgage owns the property.
Re: VA Mortgage/deed held by trustee - Posted by Alex@CO
Posted by Alex@CO on January 21, 2003 at 16:54:59:
Sorry about my previous post(s).
I don’t live in a Trust-Deed state.
But, forget about Bankers Trust of CA completely from this picture. It’s confusing.
As I wrote in my previous post, VA vendee loan is generally assumable, although the new owner must qualify as if he/she were applying for a new VA vendee loan.
There’re pros and cons of assuming VA vendee loans. Its up to your situation. And, if you don’t want to assume the VA vendee loan through a formal procedure, you can go through a regular Land Trust/Subject-to approach.
Re: VA Mortgage/deed held by trustee - Posted by Alex@CO
Posted by Alex@CO on January 21, 2003 at 16:21:21:
>No, the current owner bought the house from the VA as a foreclosure so he did not get the deed.
If the current owner “bought” through VA foreclosure sales with a VA vendee loan, why is the property still under the control of the trustee of Bankers Trust of CA?
We bought and hold 10+ VA foreclosure properties in the last four years, and I’ve never heard of us being under the control of the trustee after the sales is final (the deal is closed).
Maybe the title record hasn’t been changed or recorede yet. It’s a government program, and it sometimes (and depending on the state) takes a few months for all the paperworks to be completed.
Anyway, as far as I know, legally, VA vendee loan is “assumable” although the new owner must be approved by the lender under the VA vendee loan qualification.
Of course, if you do “assume” the loan legally, it wil show up on your credit record.
If you want to avoid that, you can take a risk of “subject to”.