I do not agree that this is the reason homeowners are facing foreclosure, as stated below. Steve is right, it was an issue of overextending credit. Don't deny those who fought for our freedom their right to an amazing product.
I mainly work with veterans/VA buyers, but in Boston. It really depends on the market. Obviously, I cannot speak for California. I will say that my offers are generally well received by other agents, and therefore sellers, because as part of my offer process I educate them on what a VA loan is, what they can expect to be different, and my experience in closing VA deals, etc. I also tend to have my clients write a letter about who they are, and include their military background. And possibly create an emotional attachment... present in person where possible!
When you say no cash... do you literally mean $0 or just a small % down? Many of my deals have closed with a $500 deposit and no money at P&S. However, YES... the seller is taking a risk. Is your client able to increase their deposits slightly even if the money is returned at closing or put towards closing costs? Maybe explaining to your client why this is risky to the seller will help them see that to strengthen their offer they may need to put some extra dollars into escrow?
Lastly, before submitting the offer - play up the other strengths. Does your client have another home to sell? What is their timeline, is it flexible? Who did the pre-approval - someone you work closely with that you know has FULLY qualified them for the loan? I suggest you find a loan officer that will work with you in the offer process. Often, I have the seller or their agent call over to the bank to ask any questions surrounding the VA loan. If a seller knows there is a team of people committed to making this happen that helps as well.