All Forum Posts by: Scott Grover

I'm not a lawyer, or even an experienced investor but... 1) Yes. 2) Encourage them to figure it out themselves. 

Make it clear to them that it is costing you money and they need to move while you start moving forward on the legal process for eviction.  

The first (and only) foreclosure I have bought was occupied by the previous owner.  I balked on the eviction process, considered renting it back, and this went on for 2 months.  But when I mentioned that I actually needed them out on the day we were finally  agreeing to so I had to follow through with the eviction, he said "oh I don't want an eviction on my record.  We'll be out this week."  My hesitation cost me about $8k in holding costs.

Good luck to you!

I was in a similar situation a year ago, and I messed it up trying to rent it back to them. Took and extra two months. Hire a lawyer or property management firm asap. Pays for themselves in lower holding costs.

Thanks @Edward B. I financed a few homes with VA also, and I don't remember it being as hard as people say recently. Makes sense with the inflation of prices and possible overvalue.

Thanks for the reply @Samantha Reeves it was one your articles I found listing the requirements, but I think there was also mention of appraiser discretion which led to my question.  I'm meeting my contractor there tomorrow and I'll speak with the seller too, and try to work out a plan that works for everyone.  Then we'll just have to convince their lender.  At least now I'm armed with some more knowledge.

Originally posted by @Kevin Swan:

Scott, when I was searching for my home to utilize my VA benefit a huge issue was finding a property that was in pretty much move in condition. There can't be any open walls, exposed plumbing or electrical, missing appliances, or anything of the sort. The VA appraisers are usually tough on there inspections (rightfully so to protect the purchaser and the VA guarantee). If there is any work to be done, it will need to be completed prior to closing. You can have the appraiser come by and look at it before you do any work to inform you of what his minimum requirement would be. My appeaser came back to the house twice because he found two minor details that the seller had to repair prior to closing. I hope this helps a little.

Kevin Swan

 Thanks @Kevin Swan.  That definitely helps helps to know that the appraisers would make a few trips to the home to check on these things.

Originally posted by @Blake King:

depends on the bank and who they send out to approve your house, I've done two VA loans and both were a giant hassle. one I'm going through now is making the sellers paint a shed in the back yard cause its flaking and same with a kids play set. they wont approve your house until its 100% before closing.

 Wow @Blake King.  That's nuts that they would require the shed and play set to be painted.  But these are exactly some of the reasons that led to my concern. 

I am looking at buying a short sale home for my family and me. VA Loan financing is preferred so I can keep what little cash I have. My concern is whether it would qualify for a VA Loan. I've done the Google search for what the requirements are - adequate heating, no dry rot/termite damage, adequate living space, mechanical systems safe and usable, water availability, and a few more. And I believe it meets all these (though I haven't been in the crawl space yet).

The specific conditions that seem like they could jeopardize VA financing are this:

• Master bath is missing a shower insert.  It's all plumbed, and operational (if you wanted to get the studs wet).  There is another full bathroom in the house.
• The patio door has about a foot of siding around the border that is missing.
• Two sides of the exterior are in desperate need of paint.
• The oven has a crack on the top.
• Insulation is supposedly "inadequate", but home is able to meet minimum heating requirements.

If any of these things prevent the VA Loan financing, I could make repairs prior to or after closing.  So I'm also wondering how that would look.

Thanks BP community for your help!  It's incredible being able ask these questions to knowledgeable people.

Check out the Miracle morning podcast. That's a great start.

Jim Miller Definitely. The first and only flip I did required me evict the previous owners. I thought about why I'm doing this - to get people into homes, not kick them out. But they had a good job and had really taken advantage of the system. I've come to the conclusion that it's not about a roof over their head. Many homeless people need to be spiritually free in order to get off the streets. So I have been trying to figure out a way to use the process of their recovery in the flipping process to fill and equip them better for the battle. Work in progress... Always.

I love it Jim Miller I got into this with a similar reason.

I do not want government 'solving' this problem for me. As already noted, cash for keys would likely have gone a long way in this case and wouldn't require inspection of every house in the future. I'm all for information sharing too but don't try to force banks into doing something they don't exist for.