Posted by Ed Copp (OH) on April 10, 2000 at 13:27:02:
Dave,
Yes it is possible to negotiate with the VA. It may help to involve your congressman to help with the negotations. Good luck…ED
VA Foreclosure-anyone experienced this? - Posted by dave smith in Dallas
Posted by dave smith in Dallas on April 10, 2000 at 13:18:09:
I am a mtg.broker in Dallas.I am doing a loan for a couple (on a new purchase)who are in the foreclosure process with the VA. They assummed the note 13 yrs.ago, with a 10 yr.perfect pay history. 3 yrs.ago the wife had the first of many back operations, was unable to work, and fell behind in the payments.They also learned at this time that the foundation had problems and the slab was cracking. They contacted the VA, who sent out inspectors with estimates,but did not follow-up with anything. Apparently the fix up cost along with the balance owed was way over market value. Their lender would not do a 2nd mtg. for fix ups and the bank turned them down because of a BK in 1991.
Since the VA told them that they would help them remedy the situation and never did, they decided to “let’em have it back”. The balance is 76K and back pay and penalties total 46K. The fix up is probably 12K to 15K- tops.FMV is around 120K, maybe 130K. Is it possible to negotiate with the VA to assume the balance without the penalties or a cash offer of something significantly less? Any help would be appreciated,especially from those who have dealt with the VA before.
Thanks in advance,
Dave Smith in Dallas
Re: VA Foreclosure-anyone experienced this? - Posted by Bill K. - FL
Posted by Bill K. - FL on April 11, 2000 at 15:16:52:
If it is not foreclosed yet, you should be dealing directly with the lender and/or the atty for the lender. After foreclosure VA will get it back and sell it thru their repo sales program.