Need info about VA repos OcwenWe happened onto a house that's for sale in the Daytona Beach, Fl area. It's

Asked by Silverfox, Florida Thu Apr 3, 2008

a VA repo through Ocwen. I don't have any experience with this and I'm hoping someone can help me. I went to the Ocwen website & read through a lot of info. It says there is a 2.25% fee for the buyer (what is this & why? - I mean isn't buying the house enough?) also that there can't be contingencies, and that they either accept or reject an offer, no negotiation. How can I figure out all the closing costs (there is a LONG list on that website) & can these costs be financed as part of the mortgage or is it cash only? Also, how can I figure out what my offer should be based on the asking price? I think the house is probably priced right, but who knows with the morgage crisis and recession. Also, we own our current house and since we would have to sell it or rent it to cover the mortgage pmts don't know how to fingure this out, either since they don't allow contingencies. ANY help will be greatly appreciate

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Other/Just L…, , Fleming Fitch Grant, Holly Hill, FL
Tue Jun 17, 2008
Some quick answers:

1.) The 2.25% fee paid by buyer: You are refunding the 2.25% VA Funding Fee paid by the original owner of the house when he/she obtained a VA insured loan. Uncle Sam wants his money back.

2.) Closing costs: Your lender or mortgage professional can provide you with an estimate of your closing costs. Closing costs include fixed items that apply to all borrowers and items that may apply to you only. Example: In Florida, all mortgages are taxed at $5.50 per thousand for Intangible Sales Tax and Document Stamp tax. Your closing costs will vary by a substantial amount if you intend to set up escrow with your lender for property tax and homeowner's insurance. Finally, government loans (FHA, VA) come with insurance premiums between 1.5% and 2.25% or more of the loan amount.

3.) Current home - you will have to show enough income to carry both mortgage payments unless you can provide an executed lease and evidence of payment (such as security deposit or 1st & last). Fannie Mae/freddie Mac guidelines allow 75% of the gross rent towards qualifying income.
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Mary Klein, , Ormond Beach, FL
Tue May 13, 2008
Dear Silverfox,

Yours is a very complex question. As a local REALTOR, I have had several experiences with distressed properties. First, selling your home IS your personal contingency. Second, distressed properties are not always a good value based on both time and money. You will need patience, diligence, and persistance, PLUS, your financing in place to move forward.

Suggestions: (1) have a REALTOR create a Comparative Market Analysis (CMA) for your current home. Is the market value of your home acceptable? If so, put it on the market, either For Sale by Owner (FSBO) or by hiring a REALTOR. (2) consider a home with motivated sellers. These homes will be priced competitively and are often in very good condition. (3) Also, bank-owned properties (REOs) are in our MLS database, ready for Buyers, and priced aggressively.

In this market, you need to do your homework. Asking the right questions is a great place to start. Feel free to call me with any further questions. Mary-386-383-5980.

Good Luck!
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