All Forum Posts by: Gail Armstrong

Another question: According to tax records the VA (C/O VRM) is the owner 2014- current. This make me think the owners defaulted on a VA loan, but under what circumstances would a VA property become a Wells Fargo REO 3 years later? Additional lien? Maybe Wells Fargo had the VA backed loan? But if the VA took ownership, why would it go back to WF? I'll have to look to see if I can find whether or not VRM ever listed it.

Thanks Ray. My agent will have the comps she ran for me tomorrow, but I've run my own (I have several excel spreadsheets for all my calculations and, of course, after my walk through with my contractor I'll know what it will cost to bring it up to move-in. That number will get plugged into my calculations and I'll know where I stand. I did read your post and it seems you anticipated a multiple offer situation and came in before anyone else at full price (actually a bit above because you added on the 3% in closing if I read you correctly). In my case, I'm wondering if anyone will come in below or if everyone will come in at or above. I'll have my offer ready to go first thing) not taking offers until Thursday) and I was also thinking my offer would be list + closing. I think between my research, my agent, and the contractor, we should be able to come up with what I should offer. 

Yes - I think you are probably right. I usually put "pay" in quotations. 

I am definitely going to live in it! I assume most owner-occupants won't be doing an all-cash offer, but I could be wrong. I am pretty sure it will go for above list and, I think, even if I went to $75k I'd still be in my margin - the house next door sold for $160k in March and although nice, was probably last updated in the 90s. Another house of a similar size a few doors down sold for $186K (again, not modernized, but still nice). These are homes from the 60s mostly. $140 is, I think a conservative estimate since I don't know what the market will be like in 3-5 years. It is not currently occupied so that's a plus. I imagine we'll end up in a "highest and best" if there are, in fact, multiple offers. 

Thanks for the advice!

I'm planning on making a bid on a Wells Fargo REO (listed on the MLS). Records show WF paid $137,500 in 4/17 and it is now listed at $65k. Since the comps in the neighborhood are $140-$200k, the listing agent is expecting multiple offers. I am going through with my contractor tomorrow to see what he thinks (I'm thinking about $50k but he may come back with a higher or lower rough estimate).

1. Is it odd for WF to list it at less than half what they paid for it. I mean, it definitely needs a LOT of work, but surely they aren't expecting the multiple offers to drive the selling price close to what they paid?

2. It is open only to owner-occupants (which I will be) starting on Thursday. Given that they are expecting multiple offers, which I'm sure will lead to a highest and best (which I can't determine until my contractor weighs in and I crunch numbers), thoughts on making the offer more appealing in general? I do have to finance, and planned on using a reno loan. Will a larger downpayment matter (say 10% instead of 5% or 20% instead of 5%) or would a larger earnest money deposit sway them more? What if waive the inspection (if my contractor feels comfortable with that idea)? I probably can't offer a quicker close than 30 days since I am relying on financing. Any other tips to make my offer more attractive?

Thanks!

Thanks - this is good info. Is it true that the VA will usually transfer the appraisal they have to the lender, thus saving me the cost of an appraisal? Also, government recording fees are not charged because it's a government agency, correct? If this saves me a little on the closing fees I should consider that.

In this situation, the listing agent has stated she has 2 offers - mine and one other (so far) that she will submit tomorrow morning and she assumes they'll come back with highest and best. If they don't like either I assume they'll just wait since I'm sure more people will come forward - properties like this do not last long.

I assume the VA cares not at all about financing (for example, 20% down conventional vs FHA 3.5% down), but would prefer an all cash buyer over a financed buyer?. What are the things that can sweeten the deal for them? I can't imagine they care about a quick closing and there's no way I'm waiving inspection if I'm paying a higher price. Appreciate the advice!

I'm making an offer on a VA foreclosure (listed at $149,500), which has been on the market for 8 days. Based on the comps, if it were in good shape, I think it would be worth anywhere from $185-$205. I am looking for guidance in what to offer. I've been told there's one other offer coming in.

I have an agent, but I've done most of the legwork myself. Sifting through online records tonight I've discovered the home sold (brand new) in 2010 for 212,000. I'm assuming the owners stopped paying 2 years later because it was listed with a Notice of Trustee Sale in 9/12, 10/12, 12/12, Auction Notice went in the paper 12/12 and then nothing happened until another NTS 1/17 and then the VA "bought" it 4/17 for $151,000. So either they lived in it for 4 years while it was in FC or they were able to get it out of foreclosure and then fell back in again in 2016. They did pay the property taxes on it through the current year.

It needs all new floors (2100 sq ft), paint throughout, some new doors (they basically trashed the walls and floors), and beyond that I don't know. Kitchen cabinets are not in great shape, but all appliances except for the fridge are there (working or not, I don't know  - house is "winterized"). I'm estimating about $15k in flooring, repairs, painting ASSUMING there's nothing else going on.

If my offer is accepted I'll do an inspection so I'd know more then. 

I've read that HUD *likes* to net 89% of market value, but whether or not that holds I don't know and obviously, the VA is a different entity.

The obvious answer is, "make an offer based on what you feel it is worth and if you don't get it, move on." And this is absolutely what I'll do if I end up in competition, but I sort of feel that even at $149,500 that's not a bad deal so would they really go a lot lower? My initial inclination was to come in between $130 and $135, but seeing the original purchase price and what VA paid for it in April, I'm wondering if this will be enough.

Thanks for reading.