VA loan did not close

[happyscooter]

Well, it didn't close. Of course as I knew they would, the VA now has come back with more problems. The contract was contingent on financing. If it was not in the original contract I say, you can't keep adding stuff to it. Good grief this could drag out for a year. His agent says 'yes as long as the VA says 'no' they can keep asking for things without us breaking the contract.' Someone on here asked why did we sign a contract if we didn't want to deal with the VA. It was the first offer we had gotten. Someone else asked how did I know he had to use a VA, why did I think he didn't have a down payment. While I think his agent can legally tell us he didn't have a down payment, it wasn't his agent. Someone else told us. Sibling is checking our contract to see when it expires. We had 2 cash offers, we will accept one as soon as our contract runs out. And possibly give the listing agent something for his time.

[constanz22]

I would think that would give you grounds to void the contract. Talk to your attorney, but, if one of the contingencies in the contract was for the buyer to obtain financing, and they have not successfully done so, during whatever time frame is specified in your contract, you should be able to cancel it and move on to one of your cash buyers. I don't know what state you live in, but, in many states you can continue to show the house while under contract and can accept a different offer. It is worded in the contract, something like, "seller is permitted to continue to show the property and accept other offers, at which time the current buyer has x amount of days to remove the contingency or the contract is voided." You definitely need to discuss this with your attorney.

[happyscooter]

Yes, it is worded 'contingent on financing.' His agent is saying VA will not finance unless we keep doing the things they ask. Sibling is looking over the contract. He will call the listing agent to find out what we can do. In the meantime, money is flowing out the window keeping the place up.

[Deleted]

Within your contract should be a provision that says Buyer must obtain financing in X number of days (typically anywhere from 21 to 45 days) and close by X date. If you've had cash offers your agent should be encouraging those folks to put in back up offers "because the deal looks shaky". Not every buyer will do this because they think it may make the 1st buyer do everything possible to close (and it often does!). Having back up offers also helps bring some pressure from the buyer to get the loan funded!

As to your comment about taking one of the other offers and only giving your agent "something for his time", be careful. There's no problem with relisting with another agent (you won't owe your old agent a commission) but if you sell to someone who saw the place when it was listed with your agent you may in fact be responsible for payment of the entire commission. Make sure you read your listing agreement carefully.

[happyscooter]

No, the people who are offering cash didn't look at it with an agent. One is a family member, been in the house several times. The other is a neighbor, again seen the house over the years. Just thinking about giving the listing agent something for his time and gas.

[zibazinski]

I won't entertain VA offers for just that reason. VA acts like Section 8 authorities. Houses have to have screens even though it's your clients ruining them. Houses have to have this and that even though the people living in them trash them. VA is like most gov't run agencies, corrupt and stupid.

[happyscooter]

I didn't want to accept it either. If it had been up to me, I would have listed it 2 months before it was actually listed. And for this reason among others is why I was going to sign a quit claim to give up my part. It isn't what my parents would have wanted, but neither is spending money needlessly.

[Deleted]

"Just thinking about giving the listing agent something for his time and gas." That's nice.

I like to give a gift certificate for a really nice local restuarant (in my areas about $100).

Keep in mind that you can also re-up the listing but do an exclusion (from paying a commission) by naming the family member and the neighbor in the contract. Nothing like keeping them motivated too! Be sure to use a real estate atty though if you go this route or pay your agent a flat fee to draw up the paperwork.

In the scheme of things, 2 months isn't that long and I suspect this stuff with the VA is just maddening because it's stupid and picky. You'll get through it. What is it costing you each month and what is supposed to be your share?

I think what's so surprising about your story is how probate was closed without selling the house. I'm assuming that was the biggest asset in the estate?

[lulubean]

I had a VA buyer for our old house, had me in tears at the last minute fixing screens so we could close. I mean big boohooing driving around town to get someone to fix screens in two hours.

[Gardening Grandma]

Apr 30, 2011 7:56:01 GMT -5 happyscooter said:

Yes, it is worded 'contingent on financing.' His agent is saying VA will not finance unless we keep doing the things they ask. Sibling is looking over the contract. He will call the listing agent to find out what we can do. In the meantime, money is flowing out the window keeping the place up.

So can't you simply say "No, we won't do whatever"?

[ty]

Apr 30, 2011 9:12:18 GMT -5 happyscooter said:

I didn't want to accept it either. If it had been up to me, I would have listed it 2 months before it was actually listed. And for this reason among others is why I was going to sign a quit claim to give up my part. It isn't what my parents would have wanted, but neither is spending money needlessly.

When I use to be a renter, one of my landlords rented a unit out to a section 8 woman and kid. After that then there was a man living there, and she turned her unit into a freaking daycare. instead of taking trash out to the bin, she stood at the gate of the building and threw it over there. Me and the other tenants complained about her and within a few months we all vacated the premises to new locations. Loud music, daycare center and they even trashed the landscape that cost the landlord at least $5 to $7 k with all the flowers, trees, bushes, and grass put in.

After I left the building, then others followed. After there was just her and the lowlife trash that she brought into the building, one night she and some client in the carport area were smoking crack and set their car on fire burning part of the building down.

I think the housing Section 8 people need to screen the people they are trying to help, but when you have 18 people complaining about 1, and they don't do anything about it, you have problems. I felt bad for the landlord, but damn, that bytch that he moved in ruined him. I and others told him not to rent to them, but he said he needed the money.

If they look ghetto, act ghetto then they must be ghetto, never rent to them section 8 or not, just don't rent to them.

[Mad Dawg Wiccan]

<<If they look ghetto, act ghetto then they must be ghetto, never rent to them section 8 or not, just don't rent to them.>>


That's discrimination and is illegal.

[zibazinski]

There's a LOT of ways around it. Usually they have bad credit and that is enough to keep you from having to rent to them. I didn't renew a section 8 tenant because of her actions and she had a fit about it. Told her she knew when she moved in it was a family neighborhood and to not bring the ghetto with her. Nothing she could do or say about it. The next place she moved to ended up being shot at and then raided for meth. Stupid landlord for not checking her references.

[DVM gone riding]

it doesn't matter if the cash offers don't have an agent YOUR agent should have a contract with YOU that guarantees THEM money regardless of how the offer comes about so don't think you can stiff the listing agent out of his 3% or whatever you/he agreed to

Refuse to fix what the VA wants fixed then the buyer won't have financing "viola" you are out of the contract!! Nothing in your contract says you have to fix things so that they buyer can get financing, also don't you have a close by date? If you are past the close by date and it didn't close then you should be good to cancel the contract for any reason you wish.

[ty]

Apr 30, 2011 12:25:17 GMT -5 Mad Dawg Wiccan said:

<<If they look ghetto, act ghetto then they must be ghetto, never rent to them section 8 or not, just don't rent to them.>>


That's discrimination and is illegal.

So what! They call it discrimination, but landlords that rent out units to people need to be careful of the riff-raff that they are renting to. I would consider it looking out for your building and your investments, not discrimination.

[DVM gone riding]

another thought, on some other thread didn't someone say that the BUYERS went around and fixed things that the VA wanted done so that the place could sell because the seller wasn't going to do it and they wanted the place??

[Mad Dawg Wiccan]

Apr 30, 2011 12:35:07 GMT -5 zibazinski said:

There's a LOT of ways around it. Usually they have bad credit and that is enough to keep you from having to rent to them. I didn't renew a section 8 tenant because of her actions and she had a fit about it. Told her she knew when she moved in it was a family neighborhood and to not bring the ghetto with her. Nothing she could do or say about it. The next place she moved to ended up being shot at and then raided for meth. Stupid landlord for not checking her references.

That's perfectly legal. Refusing to rent to a person because of the way they look is not, and can get you sued and/or decertified by Section 8.

[ty]

Apr 30, 2011 12:35:07 GMT -5 zibazinski said:

There's a LOT of ways around it. Usually they have bad credit and that is enough to keep you from having to rent to them. I didn't renew a section 8 tenant because of her actions and she had a fit about it. Told her she knew when she moved in it was a family neighborhood and to not bring the ghetto with her. Nothing she could do or say about it. The next place she moved to ended up being shot at and then raided for meth. Stupid landlord for not checking her references.

That's true, but they are challenging that because a lot of people that have bad credit doesn't mean it's necessarily their fault. Sometimes people that lose a job because a company shuts down or natural disaster, or whatever the case may be, it doesn't mean you are necessarily 100% at fault of your situation. If a person become ill and falls behind on a few billing payments (not due to their fault) automatically they are now a credit risk. They are even doing credit check on peple that apply for jobs. If you have bad credit, most likely you will not get the job to get your debts paid off. Where's the fairness in that?

I never saw Trump or Pamela Anderson being turned down for credit or housing after he's filed bankruptcy more than five times over, and Pam Anderson had her home in Malibu remodeled to the tune of close to 2 mil and then right afterward filed bankruptcy and was allowed to keep her home and all the new renovations she had done.

What a double standard system we have. a poor person misses a payment or two and he/she cannot get a place to live in, but the rich can run up millions in debt and get to keep everything and still get large credit loans.

Something not right there if you ask me, so please, don't ask!

[Mad Dawg Wiccan]

DT filed Chapter 11 bankruptcies on his businesses, not on himself. If PA filed bankruptcy and got to keep her property, it was through a Chapter 13 which gets paid back.

[Deleted]

Apr 30, 2011 12:25:17 GMT -5 Mad Dawg Wiccan said:

<<If they look ghetto, act ghetto then they must be ghetto, never rent to them section 8 or not, just don't rent to them.>>


That's discrimination and is illegal.

No it is not.

[Mad Dawg Wiccan]

It is here in CA.

[ty]

Apr 30, 2011 14:44:16 GMT -5 Mad Dawg Wiccan said:

It is here in CA.

That's why CA is so effed up these days. People that own properties and rent have very little say in the matter when they get stuck with some degenerate piece of garbage tenant.

Just to let you know, I'm not referring to color, I'm referring to all ghetto trash that have no respect for their neighbors or neighborhoods.

[Deleted]

Discriminating against section 8 isn't illegal. But discriminating against color, race, gender, religion, or family status is. And it's a Federal law , not just CA.

But why are we even having a section 8 conversation? This is about VA loan requirements and a sale, not renters.

If the VA wanted screens before they funded a loan, it's no big deal. You can buy a kit at home depot for about $15 and make one in a half hour.

I understand how agravating a situation a situation like this can be. But if it's little stuff then the OP's family is better off working with the buyer rather than starting the process all over again.

I always recommend that sellers get a thorough home inspection done BEFORE they place a house on the market so they aren't surprised or get low-balled by a picky inspector. Yes, it will cost between $300-$500 but better prepared than sorry. I chose to repair all the (minor) plumbing and electrical issues. Had there been any big ones I would have disclosed it and not gone VA (or FHA unless they were going to get a rehab FHA loan).

I sold my late mother's little 40 year old rental house to a VA buyer two years ago for full price. There were NO repairs required.

[2kids10horses]

You need to read the Listing Agreement, and your Purchase and Sale contract carefully. The VA should have given you a list of things you had to fix. If you did those things, you have fulfilled the obligation. If you did not, then, you have not fulfilled your obligation and the VA doesn't have to extend finanancing.

On your listing... there is usually a "protected period" that extends some time past the period of the actual listing. For instance, the neighbor. How did he know the house was for sale? Did he see the sign? Sure, he had been in the house before, but it was the Listing Agent's advertizing (sign) that got the neighbor to contact you to make an offer. This is the "procuring cause" that induced your neighbor into making the offer.

Your listing agent is due a commission if it was his sign that caused you to get an offer from your neighbor.

[lulubean]

Well for me it was a big deal, like two hours before closing on the house and 4 hours to close on the new one, two toddlers DH working and the stress level was high.

[zibazinski]

No kidding. I didn't rent to a family with 3 out of control children. If their parents didn't have enough sense to either raise them right/civilize them before taking them out in public, then they are too stupid to take care of my rental. If I had kids that rotten, I'd hide them from anyone I wanted to impress. I had no trouble telling them why I wasn't going to rent to them. I didn't want my place trashed. If they had any sense after that, they hid their kids from potential landlords because they sure didn't have the sense to raise them right to begin with.

[happyscooter]

VA said fix these 4 things. We did. Now they are saying fix this. Our agent said 'no.' They backed down. Now they are saying fix this.
Re: the neighbor. They had asked a few times what we going to do with the house. We said 'sell it. None of us want to be landlords.' Why they didn't speak up then I don't know. Yes, the contract contingent is upon financing. The buyer is only going to go VA. No down payment.
As far as the cost to keep it up, insurance every month and a power bill. $75-$80. A/C has been turned on. We had to keep it heated over the winter so the pipes wouldn't freeze. Anybody want to guess what we spent on propane with 2 heavy snows and temps in the 20s?

[happyscooter]

Again, I can only say so many times. Parents do not do this to your children. Talk to them now. One sibling was saying 'OK let's get this stuff out of here', I was in agreement. Another sibling was saying 'let it sit for 6 months. There is enough money to do that.'

[zibazinski]

That is why my trust and will are so well written. I saw what happened in my family and how there are still bitter feelings. Not happening to and with my kids.

[debtheaven]

HappyScooter
Obviously selling the place is somewhat of a pain, and it's too bad that the VA loan didn't come through. But unless selling the house will cost you in the end, why such impatience? I too am extremely impatient by nature. But this is one of these situations where things will take at least a few months for the dust to settle. In the scheme of things, a few months, or even a year, is not that long.

You make it sound like your parents didn't plan well. Is that really true, or are you just being overly impatient? At some point the house is going to sell, probably sooner rather than later, and you'll certainly be happy for their generous gift to you.

I'd suggest that you just accept the fact that this will not happen as quickly as you'd like it to. Even if it costs something per month to maintain the house, there are three of you, and maybe even some money in the bank. It sounds like you will definitely be made whole, and then some, once the house sells.

If I'm missing something, or mistaken, my apologies. I can certainly understand that you wouldn't want to lose money on the sale, but that's not the impression I've gotten. Of course I could be wrong.

Good luck, I hope things move as quickly as possible for you!