Twice this month the VA caused major delays in closing for my clients. In one scenario I was the listing agent; in the other I represented the buyer. Thankfully each one helped me see and understand the side of the other, but I wasn't homeless and living in a hotel room with four kids for two weeks, nor was I trying to plan a cross-country move without a target move-in date.
Granted the closings for each of these houses was scheduled to happen at the end of November, which was the supposed end of the $8000 tax credit for first-time home buyers. Each of the buyers for these two purchases were first-time home buyers, so they both wanted to meet the November 30 deadline. Fortunately the tax credit purchase deadline was extended, because neither of these closings happened in November.
Both buyers were veterans using VA benefits to purchase their homes. Both closings were drastically delayed because the VA appraisers were so far behind in completing their work. Neither lender for these buyers was able to communicate with the appraisers since the law doesn't allow communication between the lender and the appraiser, so it was difficult (impossible) for me and the other agents involved to keep our clients informed and believing closing was really going to happen.
Each closing was 10-14 days delayed because the VA got so far behind with the appraisal process. The delay cost each buyer large amounts of money due to travel expenses, extended hotel stays, etc. What is the recourse for them? What can we do to help recoup the money they lost? How can we "punish" the VA for what happened? This is a program used by millions of people - shouldn't there be something in place to require them to work more efficiently for the sake of these families?
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