Is there anything particularly special about a Department of Veteran’s Affairs REO?
It’s been on the market for about 6 months, it’s a large home (3,500 sqft)with 5 BR 6 Bath on an acre of land. The asking price is $173,500 and it probably needs about $15,000 in repairs, however I believe the home could easily go for $265,000 ARV. How can I get this property?
My stats: I’m currently refinancing my own home that I nearly had paid off, I owed $21,000 and I’m refi at $40,000. But, I need to make some repairs to the home I’m refinancing also. My wife has a credit beacon of 600 and she would qualify as a first time homebuyer who could also envoke the PEN (Georgia incentive for Nurses, Firemen, Police, etc.) program which would give her $7,500 toward closing or whatever. Yet, her income alone would not get approval for $150,000 which is what I’d like to purchase the property for. If I go in jointly, then there’s no “first time homebuyer” anything and our interest rate would be higher. Now, I’m also Power of Attorney for my Uncle Bobby (who is basically my Dad) and he’s a Veteran with a Certificate of Eligibility for a VA Home Loan. There is another option and that’s the VA Vendee Program where you get a mortgage with similar benefits to that of a Veteran even if you’re not one as long as you’re buying a VA REO. Now, I thought about Hard Money, but I’d have to either sell the home to pay it back or pray that I could refi it within 12 months. I guess, I could offer a lease option…but has anyone ever heard of that with a REO? It’s time to get creative!
So, where do I stand? If you need more info let me know…
Before all the Hurricanes hit here in the Gulf Coast region, VA would accept offers with a net of 85% of the list. My reps have told me that is no longer true. It now takes a higher net for the offer to be accepted.
So your $150k is too low. Don’t forget, its all about the net. Purchase Price - any closing cost - 6% sales commision = VA NET
Now, if it has been active for over 6 months, there should have already been price reductions on the property. Agents can request a price reduction after 30 days on the market. We are allowed to do this 3 times before we have to resubmit a CMA on the property to further reduce the price. Very few agents know this.
If you will tell me where the property is located I will do some research. It would be helpful to have the asset # 8000xxxxxx, but not necessary.
Be careful with the Vendee financing, I have had more clients denied than accepted. Even though you can get 0 down for OO, you must pay all the closing cost. If you are denied, you will not get your app fee back. Kinda risky.
You can’t lease option a REO, if that is what you are referring to.
This home is in Byron, GA. I called OCWEN today and spoke with an “actual” person. She was rude and I eventually found my way past her. The situation is this, the house has been on the market for 6 or 7 months. Some kids broke in and lit the attic on fire, now it is off the market until the repairs are made. They wouldn’t give me much info until I let them know that I was dissatisfied with their customer service. I now have the number and name of the Asset Manager over this particular property since currently they don’t have a broker listing it. How can I utilize this information? Does the Asset Manager make the decision on the offer? Will he listen to my pitch?
I’m an investor, but this is a home I want to occupy.
Thanks and God Bless,
Brandon
OK, I can see that being the case with the time frame. But you stated in your post
It's been on the market for about 6 months, it's a large home (3,500 sqft)with 5 BR 6 Bath on an acre of land. The asking price is $173,500 and it probably needs about $15,000 in repairs, however I believe the home could easily go for $265,000 ARV.
Now its…
The situation is this, the house has been on the market for 6 or 7 months. Some kids broke in and lit the attic on fire, now it is off the market until the repairs are made.
Thats funny. I’ll try and help you out.
The Asset Manager isn’t going to talk with you. They won’t answer the phone. They screen calls and communicate thru email. But, if you were lucky and got them on the phone, it still wouldn’t matter. Dead End.
Even though the property isn’t active, there is an agent handling the property. The agent is going to get the listing from all the pre-marketing activiites we have to complete. Ocwen will not negotiate a sale directly without the agent. Dead End.
The larger agencies are usually under to many strict guidelines. They aren’t allowed to operate outside the box. HUD, VA, FANNIE, FREDDIE you can forget it. Remember - government backed! One reason low-balling really doesn’t work with these properties.
My advice would be to find out the local agent and make nice. Probably the person that can help the most and/or save you a lot of wasted time. For the heck of it, call the AM and leave a message like …you are just trying to find out their local agent in charge of the property located at … You might get lucky. But you should easliy be able to find out.
It seems I find out a little more info everyday about this property…which leads me to ask the real question…Based on your experience and knowledge will the repairs on the house cause the price to go up or stay the same? Also, $158,865 is 85% NET, shouldn’t this be my first offer?
Last month I offered on one of the VA. They have their own forms and Addenda. Previous repliers are correct… they look at their bottom price.
Ocean.com has all the listing and sometimes condition of the homes. LA will tell you submit any and all offer… they have offering perios after that VA will review top best offeres and accept. Every time they lower the price they usually give 10 days to receive all offers before telling you y/n. It was one of the hard one…to deal with… I would not waiste my time. Goverment is hard to deal with even when you are trying to help them. Their explanation is that they want to be fair…
she informed me of the 10 day period and the property will be going through the process again within 6 months. Until then, I’m going to buy and sell as many properties as possible to build capital so I can purchase this home…it’s a special one with historical significance.
Sorry to put a blanket statement on this but…you don’t know what they will take unless you MAKE the offer! They might just want to get rid of it? Maybe not. But you will never know.
This is what you can do If you wan tyour wife to purchas ethe home as a first time home buyer you said she doesnot make enough money what you can do is put your wife a sht emain borrower but do no documenttation loan for her so the will not ask about her assets or income. Then she can still qualify for the first ime homebuyers program her credit is high enough to go no doc