Many of you work with VA loans on a regular basis with locations near bases around the country. When a Veteran has the misfortune of being upside down....the VA does not have the ability to enforce their own determined valuation of the "Bottom line" on the investor for the loan....amazing we think !
Imagine this scenario....Joe is a disabled Veteran...through no fault of his own is no longer able to pay his mortgage. He attempts a short sale. The VA does their valuation...there are two layers of bureaucracy in between the VA and Joe ...are the Servicer...to Joe...the bank to which he has made his mortgage payments. The next and very important layer is the Investor...this may or may not be Freddie or Fannie..it can be a private investor. The private investor is who holds all the cards with careless disregard for the VA or the realities of the market.
Joe receives an offer exceeding the valuation of the VA and the Servicer issues an approval for the short sale. Yaaah...a happily ever is in sight for Joe and the Buyers.
Oooops....all of a sudden the Investor...ABC Associates remembers that they paid the taxes on the property and now their net proceeds are reduced. The Buyer increases their offer to the highest number possible based upon the appraisal of the property by their lender...the Servicer sends the "new improved price" to the Investor.
NOT ENOUGH says the investor...they are not accepting the highest and best, the appraised amount FAR ABOVE the VA net required as acceptable. Please Mr/Ms Investor do tell what is your bottom line which continues to increase as taxes are not paid and a vacant property can develop problems. The Investor is from the not much loved school of "I know something you don't know and don't have to tell".
One would think that the VA would have some control over that...No....they do not....they won't even talk to the Investor..."we know it's a problem," comes the answer...with no resolution suggested or they believe is possible.
Join US and be sure that investors DO have requirements to report bottom lines...that they DO have a responsibility to the VA and the Veterans that they serve with loans and are not permitted to continue a practice of "secret bottom lines" that no one can guess...and are moving targets. Every entity is responsible to someone...and to ignore the plight of a disabled vet is unforgivable in our eyes.
Click right here...right now...and find your representative and let him/her know NOW this is a practice that cannot continue.