Getting around nonassumable VA Loans? - Posted by Dave A.

Posted by RR Smith on January 30, 2000 at 16:26:16:

Once they get behind in their payments the RE agent is no longer responsible… and you should follow up with a pre forclosure package…do you have the ted thomas books??

Getting around nonassumable VA Loans? - Posted by Dave A.

Posted by Dave A. on January 30, 2000 at 10:24:59:

There is a very large VA loan population in my area. These are not assumable without going through a new loan type application.

Sellers problem:
They are transferred by the military.
They have not lived in the house long enough to get sufficent equity to even pay a brokerage fee.
It is easier for a buyer to purchase a new home rather than an existing one. Builders pay all closing costs.
An easy assumption is not possable.

Anyone have ideas on getting around this?

Re: Getting around nonassumable VA Loans? - Posted by David Alexander

Posted by David Alexander on January 30, 2000 at 11:33:41:

Take over the loan subject to the mortgage in a land trust, or buy on contract for deed.

David Alexander

reduce overhead - Posted by RR Smith

Posted by RR Smith on January 30, 2000 at 11:31:14:

Have the seller sell their own house (what a novel concept!) and save the RE agent fee. Of course this will mean there will be an inefficient market and the houses will go for too little or too much (oh well).

Option TWO …Have the buyer prequaled for a mortgage going into the sale with
lower down than new construction.

Option Three L/O the property with positive
cash flow and DON’T TAKE A BEATING.

Option Four: Steam line refinance into a better mortgage that IS FULLY ASSUM.

… of course many if not all of these options work better a year or two before the move …

Re: reduce overhead - Posted by Dave A.

Posted by Dave A. on January 30, 2000 at 16:10:35:

The owner is not open for a no down deal at first. They have their property listed with RE Agent and are generally about to put it into the hands of the agents rental management co. They are almost or are gone.
Once things get deep, they just walk away from the property. Too late then for a good deal for an investor.

Will a land contract or contract for deed trigger the due on sale?

I?m opting for a L/O on a long term basis.
How do I insure that they are making there payments? These people will walk away from about anything here. I?m concerned that they will walk away from their loan (even though I?m making their payments). I there a way to keep tract of this without triggering a due on sale?

Thaknks for the replies!