Would a VA loan be used to obtain a short sale or foreclose homes?

Asked by Mary Ann, 91915 Tue Mar 18, 2008

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Melinda J. R…, Agent, Grand Rapids, MI
Tue Mar 18, 2008
Mary Ann, I am not sure what the foreclosure rate is in your area, but here in Western Michigan it is very high! Therefore, we are finding these banks are becoming more and more willing to do things for us like turn utilities back on, make minor repairs etc.

However, I would always have your buyers agent ask the listing agents if the property will go VA. Not all bank are willing to work with such financing. Banks seem to prefer cash & conventional loans. The only way to know is to get more information from the listing agent who should have an idea of what type of financing that particular bank may consider.

I hope this information helps! Best Wishes!
Web Reference:  http://www.gomelinda.com/
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Deborah Madey, Agent, Brick, NJ
Tue Mar 18, 2008
If the property were in very good shape, it might work. If the propery needs a lot of work, it won't fly w/ a VA loan. It is unlikely a bank is going to invest in repairs.
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Pam Winterba…, Agent, Danville, VA
Tue Mar 18, 2008
Mary Ann.....

It is possible if the seller or bank is willing to comply with the VA guidlines. There are extra cost the seller, VA may want some repairs complete prior to close of escrow and there may be a few other nuances.

My guess is it would not be the contract of preferance.
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