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This week I felt this video deserved a longer time on Sacramento Real Estate Voice and have chosen to share my Friday video on Wednesday. I hope that by leaving this video on through the weekend it will be visible by more veterans buying a house or condo. It especially would be nice if banks would get a glimmer of this video and start accepting the VA home buyers who also want to purchase a Short Sale or Bank Owned home for sale.
The Veteran is not being accepted by the Short Sale banks or the banks selling bank owned REO homes and condos. Listing Agents need to understand that there are some VA loans that do NOT require closing assistance from the seller. Congress needs to take a good look at this and start the process for the banks to stop being discriminatory against our Veterans.
You may be thinking that the homes or condos these two home buyers have been attempting to purchase were torn up, had issues that the VA inspector would have asked the banks to fix. This has not been the case. These were clean houses and these VA home buyers were not asking for money toward their closing costs.
It’s time to give the Vet a break…BANKS start accepting the VA home buyer on Short Sales and bank owned homes for sale. And agents start understanding what a VA loan is all about and know what a VA no, no is as well as what a VA NOT no, no is. My Sacramento VA home buyers want to buy a house.
Other Good Articles to Read:
Sacramento Home Buyers Find Homes in Multiple Offers
When it comes to short sales the issue lies with the seller and the listing agent not the bank. Since the seller is the one who selects an offer and then sends the ratified offer to the lender. If they don’t sign off then it isn’t the lender rejecting the offer it is the seller. Perhaps more education of agents who are advising their client not to accept a VA loan is in order.
I have closed VA loans on foreclosure properties without any issues. It is hard to generalize as to why their offers aren’t making the grade. With condos if they aren’t VA approved the bank won’t accept the deal but otherwise in our area foreclosures are being sold with VA loans all the time.
Yes, this article talks about Short Sales and Bank Owned homes for sale and covers agents and banks. Both are discriminatory against the VA loans. Agents need to educate themselves on the VA loan and banks need to give the VA home buyer a break. These VA Sacramento home buyers are VA approved and they are NOT a VA no,no which means they are not required by VA to have the seller pay their closing costs.
Lucky you having closed some bank owned foreclosed properties as VA. Wish I could say the same out here in CA. Perhaps, it will change. This is the reason for the video to bring attention to the VA home buyer here in CA.
Thank you for your comment.
Gena, Thanks for the great video and article. I’m a veteran myself who is fairly new to the real estate business and one of my clients is hoping to use his VA benefits, so I’m really glad that I came across this. I do get what you’re saying about banks wanting to minimize the amount of closing costs they have to pay, and they don’t like to make repairs to properties in order for a loan to close, but I don’t really see any other reason they would discriminate against VA when they are the seller and not the lender.
Aaron, only through the experience of many rejected offers and the mind set of how VA appraisers use to call every knit picking item in the old days do I call attention to this. There are agents and bank who know nothing about the VA loan and there are those who remember how it use to be who are in the arena of choosing which offer to accept. There are many who have never even heard of VA no, no and yet they are in the offer selection process.
I simply want to bring attention to this and start having agents and banks learn about the VA and their loan programs so that these fine folks get their fair chance at buying a house.
As far as your comment ” don’t really see any other reason they would discriminate against VA when they are the seller and not the lender”, these are the banks who are the seller and they are making the decision of whether or not to accept VA home buyers who happen to have VA loans.
Good luck with your VA home buyer and I hope that their offer is accepted.
I know this is an old conversation, however my wife and I are going through almost the same thing. I am a veteran using my VA loan for a second time. Our offer was accepted on a bank owned house that passed the VA’s inspection, The house is only a few years old and is in great shape. Our problem is that even though we were pre-approved we still have had a snag throughout every step in the process, from the owner(bank), lender, underwriter etc. Right now we have been back and forth with the underwriter because (even though they swear they’ve dealt with VA before) they have absolutely no clue about VA or a military members leave and earning statement. Being stationed in CA we are residence of another state so they questioned that, then they had no clue what and how BAH (basic allowance for housing) worked, they couldn’t figure out what my deduction for TSP (thrift savings plan *basically a 401K*) was, they wanted something in writing from my command stating that I am in fact stationed in CA and will be there (even though they have had a copy of my PCS orders from day 1) The underwriter promised a 72 hour turn around time and have actually had it over 3 weeks. It really sounds like they are stalling for another reason. we’ve missed 3 closing dates and pushing our stay at our current residence (our 30 day notice came and went)
I realize that it’s not exactly the same as your situation but I do think that lenders, realtors, underwriters, banks really need to educate themselves on VA, FHA loans. And stop discriminating against the Veterans!
That’s amazing! I feel for ya and all the other Veterans. It’s a shame that more of the professionals out there just haven’t taken the time to educate themselves on VA loans.
I’ll be thinking some good thoughts for you and hope this ordeal ends soon so you can enjoy your new home. Congratulations on your soon-to-be purchase and thank you for sharing your ordeal with the readers.
Hello,
I am also a vet and it is our third offer on a home. The first two- even though we made the highest offer, were not accepted…our credit scores are above 800 and we have a long credit history….we have almost no debt and both have well paying jobs…..i feel the discrimination and it is very upsetting….and like you stated many agents have no clue about the VA loans…will this ever change?
I feel for you! The agents and the banks are so afraid that a VA buyer will have too many requests for repair that the seller will be saddled with and a lot of them don’t realize that there are VA loans that do not require the seller to contribute cash toward the VA buyer’s loan. All I can say is that your Realtor needs to make a personal contact with each listing agent to assure them that you will not be needing a contribution from the seller and if the house is in good shape, then there shouldn’t be a request to fix anything from the VA appraiser.
Even with all that, there are still agents (notice, I didn’t call them Realtors) that just don’t get it!
Thank you for your military service and I hope that your offer will be accepted soon!
Gena, great video, I am yet another Vet living in the Inland Empire faced with the same problem. Our scores are in the low 700, we are pre-approved for the maximum in our area. We have made eight offers over the past four months and not one has been accepted. Of late, we’ve offered 15-20k over the listed price in the hopes that would inspire the bank and seller, however; nothing. Would you know of any angents in the area that understand our plight?
Thanks,
Rich & Diana
Rich
Hi Rich & Diana,
So sorry to hear that you too, are having to go through this. I know how difficult it was for my clients and I worked like the dickens to get their offers accepted. My suggestion is to write a letter and have your Realtor submit it with your offer. In your letter explain briefly that you are a VET, have a credit score in the 700′s.
I’m assuming that your VA loan does NOT require the seller to pay the closing costs…if I am correct, then mention that in your letter. Many VA loans require the seller to pay the closing costs and WON’T allow the VET to pay those closing fees. Sellers have that in their mind and don’t seem to be able to let go of it so if your loan does NOT require it, then be sure and mention that in the 1st paragraph of your letter.
The next thing that sellers are deathly afraid of with a VA loan is the VA appraiser coming in and finding a bunch of things wrong and requiring the seller to fix them. My suggestion is to find the cleanest house you can and mention that you don’t see anything that would need to be fixed.
You don’t want to offer more than what the property is worth, otherwise it won’t appraise and it could actually back fire on you with the seller.
I would make your letter very concise with bullets so it’s easy to read. Make sure your Realtor understands your VA loan so they are articulate enough to explain it. Also, a letter from your lender might also help to assure the seller that you do NOT require closing costs.
Honestly, you need to be proactive and give your Realtor the amunition to fight your cause.
I hope that helps. I’ll be waiting to hear that you have been accepted on your offer!!!
Gina…
Thanks for exposing this FIRST! I noticed the same UNDERHANDED play being performed here in Florida. I am considering legal action against those who are using the AS IS clause and avoiding/ignoring Veterans who seek to exercise their Life, Liberty and PROPERTY (PUN intended) rights, along with denying me the right to partake in an Administrative Claim to purchase a much needed home w/zero down. (Due Process).
Disparate Treatment is also in play here, being that one group of individuals (Veterans unfavorably) are treated differently than others (as those with cash favorably), being that VA requires more paperwork.
Sorry Bruce that you are experiencing this. I am finding that it will just take education especially on the part of new agents who really have not experience a VA loan nor know anything about it. On a good note: I currently have an Air Force active VA 1st time home buyer and he was expected on his first offer. But, we are working with a listing agent who has 30 experience. I think that is where the focus is…good luck to you and thank you for popping into Sacramento Real Estate Voice with your contribution.