Posted by Ed Copp (OH) on February 16, 2001 at 14:23:14:
is fully guaranteed by the federal government (this means that the taxpayers will pick up the tab, and pay the lender 100%), so it is really stupid to even think about a short sale (the comment came from an attorney…never mind), I guess it would justify a legal fee.
The V.A loan is assumable if: you qualify, and if you are willing to bring ALL back payments and misc. fees up to date; and if you will sign “personally liable” releasing the seller from further liability.
The equity is approximately ZERO, what I call a phantom equity. Somebody thinks it is there, but after my expenses I will not be able to find it.
This seller is looking for someone to rescue her. I would walk away and just let her keep looking (just my opinion).
I would like to l/o but seller says VA will not take anymore payments - they only want a payoff. Her attorney is advising a short sale, but there is no equity. How can I help if VA won’t accept her payments?
Re: Lease Option Help Meeting w/ Seller Sunday AM - Posted by Tim (Atlanta)
Posted by Tim (Atlanta) on February 16, 2001 at 14:19:12:
Sounds like the seller is misinformed. I can’t see why the VA would not let her pay the penalties and the like to reinstate the loan. Especially if she got the first foreclosure notice on 2/14. Should be able to bring the loan current before foreclosure.
Now the question of why. From your post, there are 3 units, 2 of which are rented for a total of $1300. That is $650 each, right? So three units would be a total of $1950 rent. The payment is $2043, for a negative cash flow of $93 per month. That is without taking into account vacancies, maintenance and other expenses. If the place appraises for 217K and has a payoff of $207K, there is really no equity. Where is the deal here? I say pass on this one.