I don't know who is out there that can give some advice, but I've about had it with the VA..

I'm under my second contract that the VA has somehow screwed me out of and this time they did it after closing.

The first house was underappraised by 30K.. we tried to give comparables etc, but the VA appraiser wouldn't hear of it and stuck to his numbers.. the house sold for 5K under asking value...

This time we've gotten the appraisal back early.. got the inspections done.. then waited the 6 weeks required by VA to close. 1 week before closing the VA needed corrections on some of my paperwork.. no biggie, that should have been the least of my problems.. It was corrected and in less time than the VA promised; so we closed 3 days early. Nice!

Well.. the next day we get a phonecall that the VA denied transfer of funds because they don't like the termite inspection. In Texas it's a required inspection and is needed as well by the VA. The inspection said that there are no termites nor had there been a history of damage/repair from termites. What the report said were that there were "conducive" conditions that could warrant termites.. aka the wooden fence around the yard (like everyother house in all of texas) and the wood chips used from the landscaping were up to the house which could also house termites. The inspector wrote that as conducive as part of his job. The VA had no problems with it for 5 weeks... then AFTER we closed they would not fund the transfer..

I'm out 2K from their first screw up and now close to 5K on this one.. what am I supposed to do? I'm a disabled veteran and with a 820 credit score.. banks would love to give me money, but not the government.

Has anyone else out there had this problem and how did you fix it? Is this a breach of contract? How do I recoup all the money that I've wasted with this???

-Aggravated and Homeless...

I am no expert but I would be calling my elected representatives ASAP!!!!!

I linked this to the finace forums so our resident expert could provide his advice.

First off, VA had nothing to do with it. Your problem lies with the lender you are using. Your loan officer sounds like he is an outright idiot who is BS'ing his way through the deal giving you bad gouge along the way. Take your loan to another lender.

Also, VA does not mandate any minimum time to close. A lot of lenders have been slammed to the gills because of all the recent refinancing. That's why you had to wait.

The termite issue is argumentative to say the least. A wood fence and wood chips as part of the landscaping being the deal killer on the termite inspection? Someone is just being dumb. Tell your loan officer to give you a copy of the turndown letter and take every bit of documentation to your attorney.

Sounds to me like you got screwed over due to someone being ignorant.

...and forgive my language... Just got through watching Gran Torino.

Thanks for the advice, but I did get a copy from the lender.. the monies were transferred to the bank at closing, but the last underwriter (VA) that looked at it after the signature stated that the inspection did not meet VA standards. That's why the funds didn't transfer. I've had to get an inspector to write a formal statement to the VA underwriters stating that removing the fence would not be feasible since it would not keep out children from the pool and or keep pets in and that removing the wood chips in the mulch deters from the esthetics.

This has been a ridiculout nightmare for me and my husband. If this doesn't work, my attorney and I are going after them for EVERYTHING.. including the fees paid from the first house.

My lender is ignorant, believe me SHE'S not the first one I've dealt with.. and the 6 week turn-around.. that came from the VA's mouth.. I called because I wanted a shorter time frame.

I am never dealing with the VA again. This will be my last purchase (maybe) and if not.. I'm going to go conventional or lump sum because this is not worth the aggravation!

Thanks everyone.. I appreciate the feedback

Something about this does not sound right. The VA does not provide loans, they only provide a guaranty. The fact that the house had defects should not have been a problem. IT says quite cleary in the federal benefits for veterans (2007) "This VA appraisal estimates the value of the property. It is not an inspection and does not guarantee the house is free of defects. VA guarantees the loan, not the condition of the property". It is possible your regional office added further restrictions, but I find that unlikely. For a current copy of the Federal Benefits booklet, you should write to:
U.S. Department of Veterans Affairs
Office of Public Affairs (80D)
801 Vermont Ave NW
Washington, DC 20420

quote:

Benefits booklet

Much faster to access here
Federal Benefits for Veterans, Dependents and Survivors

VA doesn't see the file until they receive it often times months after closing. This is your lenders doing. At that, whatever issue that was wrong on the appraisal can still be addressed. The whole "appraisal is not an inspection" line is misinformed. The VA appraisal carries pretty much the same guidelines as an FHA appraisal.

SPAMMER

This message has been edited. Last edited by: MortgageGuru,

Just a thought.

The VA will only provide loan guarantees for homes that are in "Average" or higher condition, and have the right to decline those not meeting standards.
VA loans are usually sought after by lenders as they offer an insurance of some sort. But I agree with the MODERATOR..that the VA does NOT decline a loan after closing..never heard of it..in fact it is part of closing such as the funding fee etc and/or its waiver.

Eres Tu!

The only way VA will not gurantee a loan is if the price that the individual is asking is more than what VA thinks it is actually worth.

There also is a waiver that is signed by the individual who is making the purchase saying they will do the repairs themselfs, like painting ect.

I have a strange idea that there is more to this story that has not come out.