Foreclosures and Suitability of VA Loans

The severe down turn in the US real estate market has caused home prices to come down drastically for the past two years. Many homeowners have gotten their equity eroded and New Build Or Pre Owned are forced to go in for foreclosure as they are unable to meet the monthly housing payment or increase the equity component in the home sufficient to cover the loan amount.
However, this picture presented an opportunity for some to choose and pick the homes they like the most, at almost bargain prices with conventional mode of finance. However, armed service personnel with VA certificate eligibility are finding it difficult to get homes due to stringent rules that are to be followed in VA loan process.
Many homeowners, out of sheer frustration strip their homes of all the valuable cabinets and in some instances, appliances just to salvage something. Even when some homes are left behind in perfect condition, vandals damage the home Creative Ways To Sell A House Fast and siphon off the essentials, as they are unattended for long periods of time. Lenders or banks while repossessing homes do not provide adequate security for foreclosed homes and as a result are left to rot for months together.
Veterans Administration gives importance to the condition of the homes and may not allow purchase of destroyed properties. This puts the VA certificate holders to great disadvantage, as they cannot proceed with the loan due to non sanction of loans on such properties. VA has a point, as it undertakes repairs to keep the property in top shape and purchases them, in case of default by the VA borrower.
You can see many real estate brokers and agents complaining that lenders are not inclined favorably to sanction VA loans compared to other loans. Due to the strict guidelines followed by VA, even when some lender is ready to provide a loan, the property may not match the conditions required by VA and as such, the loan falls through. This is a waste of time for the lender, broker and agent. One more reason making the rounds is that lenders are offering loans to those coming forward with monetary offers or great down payment and neglecting the government backed loans like VA or FHA.

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