Posted by Cole Haynes on July 18, 2007 at 19:35:46:
Tye,
I appreciate the reply, I have done a lot of digging and found information from HUD.org showing this agreement isn’t required for my particular situation. After forwarding the info to everyone involved, the lender later told me we could do without the additional paperwork. Go figure. Looks like I need to become the expert on FHA/VA regulations so I dont get screwed out of deals…
Thanks for the help Tye.
Cole
Selling L/H w/ VA financing, Help! - Posted by Cole Haynes
Posted by Cole Haynes on July 16, 2007 at 14:58:50:
I have this l/h deal purchased, rehabbed, under contract, buyer easily qualified, set to close on the 30th. But, I have run into a very large problem.
I helped my buyer get set up with VA financing. The home being sold is on a private street with 18 other homes and VA wants 75% of the residents to sign a notarized “Road Maintenance agreement” holding them accountable for their small part of the road. The residents have been responsible for their part of the road all along but when I approach these residents they do not want to, “sign a contract with the government.” It really looks like this is going to put a hole right in my deal if I don’t get this figured out. I am trying to work through it but I am getting stuck. Has any one dealt with this before?
This very home sold previously with FHA financing in 2001 so my finance lady got in touch with the title company who closed the deal and they have nothing on file from when it was closed then. So they got arounnd it somehow.
Any help/suggestions would be appreciated.
Cole Haynes
813-766-6756
Re: Selling L/H w/ VA financing, Help! - Posted by Tony Colella
Posted by Tony Colella on July 16, 2007 at 18:36:47:
This goes back to my opinion that I would never want to sell to buyer who needs and FHA type loan. Seems the lender/gov’t requirements all but negate the contract in favor of the buyer.
“Yes Mr. Seller, we the bank agree that this home is worth the selling price, but now we would like you to spend your money to improve it to our specifications so that we can finance this buyer.”
Heck no.
It makes no sense to me why we would put up with this. I don’t care what the buyer’s lender wants, that’s his problem, no mine (the sellers).
Take my opinion with a grain of salt since I am a buy and hold guy but I can say with some confidence that when I do sell, it won’t be done at the mercy of the lender.
You may just have to find a loan broker who has a difference loan package for these folks.
Just my 2 cents.
Tony
Re: Selling L/H w/ VA financing, Help! - Posted by Sailor
Posted by Sailor on July 18, 2007 at 17:34:43:
Cole, I’d find out for sure exactly who is making this demand. Is it a VA regulation? The lender? A petty bureaucrat? I find that often the paper shufflers misinterpret requirements. Track it down & find out exactly what, if anything is required. If you can’t overcome this, go to plan B & get another loan. Good luck!
Tye
Re: Selling L/H w/ VA financing, Help! - Posted by Cole Haynes
Posted by Cole Haynes on July 16, 2007 at 20:11:49:
Tony,
This is exactly why I am coming to see you in August. I will try to work this one out and then change strategies for the future. Thanks.
Cole