The majority of my buyers have been Hawaii Military and Veterans and along the way there have been many changes within the VA Home Loan guidelines. First of all, VA loans are guaranteed by VA (U.S. Department of Veteran Affairs) but the loan is actually with your local lender.  (More on the process here:  VA Loans & Hawaii Military Relocations: This Realtors® Process)

The VA Home Loan Office in Honolulu, Hawaii has been extremely helpful in many a difficult transaction and they usually reply promptly. We know that they are truly trying to help the veteran of the armed forces and protect their interests when purchasing a home.

That's certainly understandable, right?

We're now seeing a different approach to the VA Notice of Value (somewhat a likeness to "back in the day") and there are sometimes repairs listed that have to be remedied and the lender is responsible to ensure they are done.

So, let's get this straight. The VA appraiser believes that a bent/torn screen is affecting the value of the property?  Are they safety or hazardous items? But hey, that's okay because these things are easily repaired and remedied.

With a foreclosure the bank pretty much states that they will NOT do any repairs and most likely will not pay for the Termite Inspection, Survey and the list goes on. So when there is a possible high cost repair how can the vet be expected to fork out money BEFORE the transaction has recorded. In other words...does fixing someone else's property make sense when ‘anything can happen' from that time to closing.

So the veteran is really not protected and there is no guaranty that ‘should' something happen that the vet will be reimbursed? Not to mention the liability if something goes wrong with the repair of "someone else's home" that they will be protected?

Tell me if I'm not understanding this somehow.

Or....is it just that......

Maybe I'm just a stickler for doing things the right way to protect my client.

 

 

                                                       

 

Celeste "Sally" Cheeseman  is a Realtor-Associate® and Certified Residential Specialist (CRS) with Century 21 Liberty Homes in Mililani, Hawaii. With a sharp understanding that a listening ear is the key to a client's needs  she serves the island of Oahu (Honolulu County) and all Hawaii Military Relocations, Hawaii Retirees, Hawaii Job Transfers and Hawaii Residents, Home Buyers and Sellers.

 

 © 2007-2013 Celeste "Sally" Cheeseman's Hawaii Real Estate and Relocation Blog.

All rights reserved.

     

 


 

 

 
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15 Comments on Understanding the VA Notice of Value?

MAR
17
2010
1,361,049 Points 244 Featured Posts Outside Blog Attended Rain Camp Called Shot Master

Sally I don't think that you have it wrong.  I wonder if some of these banks have a clue as to what they are doing.  Maybe they just want to hang on to these properties longer and spend more of their money on them.  Seems to me that doing the repairs would be the cheapest way out for them.
9:38pm • #1
1,585,801 Points 430 Featured Posts Outside Blog Attended Rain Camp Called Shot Master

Sally - like so many other things the banks do, it does not make sense. Thankfully these VA buyers have YOU on their side - to provide guidance, education, counsel and support. Seems like what they are doing defeats the whole purpose of the VA loan - to get the Vets into homes with no money down. Who has the big pockets here!?

Jeff
10:12pm • #2
561,252 Points 3 Featured Posts Outside Blog Called Shot Master

Sally,

That's why I believe REO's are not for everyone. Unless the Banks decide to accept the same responsibilities as normal sellers and afford buyers the same rights/protections you clearly describe VA buyers may have to look elsewhere. JMHO

Steve
10:55pm • #3
970,267 Points 245 Featured Posts Localism Sponsor Outside Blog Called Shot Master

Steve: REO's are a heck of a lot better than a short sale for especially the military relocating to Hawaii. They don't have 3-6 months to wait just for an approval while they and their families are living in a base hotel. This is just not for REO's either. VA appraisers are jotting down such minor things ...that do not affect the sales price on non REO's. 

 
11:11pm • #4
970,267 Points 245 Featured Posts Localism Sponsor Outside Blog Called Shot Master

Jeff: That's what I'm getting at. No matter if it's an REO, short sale or regular transaction these are popping up...not just with VA, but FHA and conventional as well. I feel good about the fact that lending criteria has tightened and there are more qualified buyers but to go to these lengths to get a simple appraisal and NOV in is just not right. Especially if the appraiser is the one that has to go back out to check.....another hundred to hundred fifty bucks.

 
11:15pm • #5
970,267 Points 245 Featured Posts Localism Sponsor Outside Blog Called Shot Master

George: It would be the cheapest way.  I guess it's a catch 22 type thing...you wanna a great price on a decent home then let's mess with you another way sort of thing. Unfortunately, it's the VA buyer who is suffering... they incur more expenses needlessly BEFORE the home is legally theirs.
11:17pm • #6
570,707 Points 25 Featured Posts Localism Sponsor Outside Blog Attended Rain Camp Called Shot Master

Hi Sally, I've run into this issue with FHA too.  When the seller won't pay for repairs and the buyer is nervous about doing so before they are 100% sure they will be able to close without some glitch coming up during escrow, it can become quite an ordeal.  On one recent transaction, the listing agent and I (both of us women) got out a ladder and tools and did the work ourselves to make the deal go!  My buyer was very happy and she did get her home.
11:40pm • #7
970,267 Points 245 Featured Posts Localism Sponsor Outside Blog Called Shot Master

Susan: And that's what we do... ;)  Unfortunately, I've seen some fall out because a couple grand was way to much to put out there.

 
11:45pm • #8
MAR
18
2010
1,453,737 Points 46 Featured Posts Outside Blog Called Shot Master

Sally, Thanks for the post. Foreclosures are not always the best deal for buyers .
5:52am • #9
1,225,851 Points 79 Featured Posts Localism Sponsor Attended Rain Camp Called Shot Master

Good morning Sally,

Thanks for your message on the "value" to the consumer. Repairs being completed are chaeper in the long run for all parties concerned! 
6:51am • #10
549,607 Points 36 Featured Posts Localism Sponsor Outside Blog Hit Router

Thank you for your wonderful post!  You are so right.  The banks are running are lives.
11:02am • #11
1,346,816 Points 71 Featured Posts Outside Blog Attended Rain Camp Called Shot Master

Sally - it is sad that the banks have that kind of control over us - another great post!
4:37pm • #12
MAR
19
2010
111,622 Points 1 Featured Post Attended Rain Camp

Sally: it's sad but I've seen lots of would-be VA loans get switched to FHA because of things like termite clearance and other repairs just in the interest of getting the deal done. It's too bad because the borrower/vet deserves the 100% loan versus a 96.5% loan. But everything in your post is right on - you don't want the borrower to pay for any repairs before the house is actually theirs!
3:35pm • #13
424,967 Points 39 Featured Posts Hit Router Called Shot Master

Sally - We have lots of VA in my area near Eglin, too.  If the borrower is VA, FHA or anything else, we let them know there might be repairs upfront.  They sign up knowing what they might encounter.  I've had some do the work on their own, too, and happily, because they are getting a great deal.
6:40pm • #14
MAR
23
2010
592,224 Points 22 Featured Posts Outside Blog Attended Rain Camp

It's a shame that the mortgage issues are reaching as far as the VA loans. You'd think the government would at least make sure our military people were cared for. And yes, VA and FHA have always been difficult. And they're getting even more difficult.
11:53pm • #15

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Celeste "SALLY" Cheeseman RA CRS HAWAII Mililani Oahu Real Estate

Mililani, HI

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Century 21 Liberty Homes

Address: 95-221 Kipapa Drive Ste. E-3, Mililani, HI, 96789

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Reading my blog will give you the human side of this Real Estate Industry Professional as well as allowing you to walk beside me through my writing about Hawaii Real Estate & our Local Area. As a resident of Honolulu County Hawaii for 42 years you will get a tour of a lifetime. Specializing in Hawaii Relocation Military VA Home Buyers you can be rest assured you will be in good hands. I LISTEN to YOUR needs and give you sound advice. Hawaii Relocations, Hawaii Military Relocations, Mililani Hawaii Real Estate, Living in Hawaii, Army Navy Air Force Marines in Hawaii. Read more at www.cheesemanhomes.com


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