Tip 32-2011: Short Sales and VHDA Loans

(Short Sales and VHDA Loans) Prior Tucker Tips have discussed that short sale negotiations continue to be difficult and still take way too long to obtain an approval.  There are a few exceptions to this case - individual private lenders, some credit unions, hard money lenders, and now VHDA.

VHDA is one of the few institutional lenders which will try to complete the short sale negotiations within a sufficient time to meet the contract terms, including a reasonable closing date.  VHDA will appoint a negotiator immediately and order an appraisal.  The negotiator is usually very responsive and actually returns telephone calls and emails.  Possible problems with VHDA negotiations include they are usually very strict on what expenses they allow to be paid our of the sales proceeds and what can be paid to a second lender.  Furthermore, they will only pay a maximum of five percent (5%) real estate commission.

All in all, VHDA is an excellent lender to work with on a short sale.  Too bad other lenders have not adopted some of VHDA’s attitudes and approaches.

Please contact our firm if you have questions or need legal advice.  

Tucker Griffin Barnes - Where deep insight equals powerful advantage.

Senior Partner

William D. Tucker, III
Tucker Griffin Barnes P.C.
Charlottesville, Virginia
434-973-7474
Tucker@TGBLaw.com
www.TGBLaw.com

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Tip 31-2011: Warning - Another Internet Scam

Tucker’s Tip #13-2011 warned about an internet scam where a foreign buyer wants to buy a higher price property for cash (usually sight unseen.)  There is a new scam making its way through both the Central Virginia and Valley real estate markets.

This new scam involves a Japanese citizen (“Akira Hibino”) living in Canada who wants to buy a property for cash.  He asks the realtor for a list of properties meeting certain criteria, and then selects one to put under contract.  He even includes a “questionable” bank statement showing sufficient cash to close.

The alleged buyer then asks the realtor to recommend an attorney to handle the transaction.  The buyer also does “not wish to forward my deposit to a third party.”  The buyer then contacts the attorney for a “retainer agreement.”  Eventually the buyer will ask for wiring instructions for the attorney’s escrow account.

DO NOT WASTE YOUR TIME with this scam!  Once again the alleged buyer (scammer) is trying to steal the law firm’s identity.  He is not going to be buying any real estate.  If it seems too good to be true (a cash buyer for a higher price property without any issues,) it is too good to be true.  It’s a scam!!

PS—Just prior to this posting we were sent the name of another scammer from Canada (Shinjyo Naoki).  Be careful out there.

Please contact our firm if you have questions or need legal advice.  

Tucker Griffin Barnes - Where deep insight equals powerful advantage.

Senior Partner

William D. Tucker, III
Tucker Griffin Barnes P.C.
Charlottesville, Virginia
434-973-7474
Tucker@TGBLaw.com
www.TGBLaw.com

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