Posted by Dave T on February 20, 2000 at 16:06:03:
Yes the VA does reject bids that are too low. There is a simultaneous bid period where all bids submitted are opened at the same time. The VA will award to the highest acceptable bidder. If no acceptable bids are submitted during the simultaneous bid period, the property then may go into a first come/first served status. In this phase, all bids are opended on a daily basis, with the award going to the first bidder submitting the highest acceptable bid that day.
If the winning bidder makes a timely application for financing and is turned down, the VA will return the earnest money deposit. If the bidder applied for VA vendee financing and is unable to qualify, the VA may deduct a $300 application processing fee before refunding the rest of the earnest money deposit.