All Forum Posts by: Matthew Coleman

I'm finishing up a tax deed purchase now in Camden County. Not sure how long a property has to be delinquent before they start the tax sale process. Here in Camden they publish a list months in advance and continually update it until the day of the sale. 

The redemption price is the amount paid for the tax deed at the tax sale plus any taxes subsequently paid by the tax deed purchaser plus 20% of that amount for the first year or fraction of a year elapsing between the date of the sale and the date of redemption. After the first year following the conclusion of the tax sale the tax deed purchaser is entitled to an additional 10% for each subsequent year or fraction of a year until redemption.

Twelve months after the purchase the purchaser can "foreclose the right of redemption" on the property. Once that is complete the purchaser has title. However, the purchaser cannot get title insurance or offer a warranty deed (i.e. "marketable title"). The purchaser can start a quiet title action in order to clear the cloud on the title. Once that is done the purchaser has a full, marketable title.

I purchased a tax deed on April 2, 2019. In mid-April 2020 I started the process of foreclosing on the property. My attorney knew my intentions to sell the property and subsequently commenced the quiet title action as soon as the foreclosure process was complete. The process involves all possible lien-holders to be served by the sheriff and having them sign a release. If they fail to sign or challenge the action, 45 days after service a default can be entered. The previous owner of my property was served two weeks ago and has indicated he will sign the forms, but if he doesn't we can enter a default judgement in a couple more weeks. I bought it for ~$9400, plus $1250 in legal fees, and I'm already under contract to sell it once I have marketable title for $35,000. 

Good luck, hope this helps

I'll chime in here. There is not a cap on how many times you can use the VA loan, but there is an total amount cap on how much you can use at once. I currently have two VA loans, and at one point had three. If you sell the property and pay off the loan your entitlement is restored. If you want to reuse your VA loan in the same area, it has to be a "substantial upgrade". I'm not exactly sure how they define that, but the example I was given is that if I currently lived in a 3/2 attached home that I bought with a VA-backed loan, I would have to purchase something larger and/or nicer than my current residence for VA to consider it.

If you look on the VA's website they have a Loan Officer's Handbook. I have it bookmarked, but I'm at work right now or I'd post it here. LOTS of valuable info in that document. I know it can be difficult to find anything there though.

Hope this helps.

Matt

check this out. I've used my VA several times. I've also got the VA lender's handbook (on the VA website) bookmarked at home. I'll post it when I get home.

https://www.biggerpockets.com/blog/build-wealth-va...

@Gary Faraon, which HOA board are you on?

@Patrick Barker haha! I just PM'd her and gave her your name as well. 

Matt

Yes, she will. Check out the VA Lenders Handbook on the VA website.

http://benefits.va.gov/warms/pam26_7.asp

Occupancy requirements are discussed in Chapter 3. Lots of good info in this pamphlet. Good luck!

I've done several VA loans, and none of them said I had to stay there for 12 months. I just had to sign a document stating that I intended to occupy the property within a reasonable time. My mortgage broker (a former VA underwriter) just said that it is usually a 12 month time that is expected by the lender.

As far as the entitlement is concerned, yes, his entitlement that is currently being used for the property will be tied up, but he'll still be able to use the rest of it (total max entitlement is 417k in most counties) for another property. This is as long as you can prove to the VA why your moving (they usually only allow you to buy another property if it's a larger house, or the change can be justified; i.e. family circumstance change, etc). But again, my mortgage broker said that once your using your second-tier entitlement (which in your partner's case he would be), then they usually don't ask too many questions.

As far as closings goes, I've never had a closing go past 45 days with the VA. My last one was supposed to be 30 days, but got extended to 40 by the lender.

Hope this helps. Let us know how it goes!

My lender in St Mary's, GA is a former VA underwriter, so she is very versed in VA loans! PM me and I'll send you her contact info if you want.

Thank you, @Samantha Reeves, I agree. There's actually a guy I work with right now that currently has 2 VA loans out. The VA doesn't have a restriction, whereas the lender may.

@Charles W., the VA uses what they call MPR's, Minimum Property Requirements, as their minimum requirements. If you search around on their website there's a .pdf of them. I have it saved on my work computer. Basically, the home has to be move-in ready. I have also been told that it can vary by appraiser. Hope that helps.

They will definitely let you have multiple loans at one time, the only limit is the 417k total entitlement (and that may be higher depending on location), and you Could go more than that, but then you'd have to bring money to the table. 

Another thing, they don't look at size, just amount of loan. So you could be currently living in a SFH with a 100k note (for example), and then move into a duplex or triplex that has half the square footage (per unit), but all they'd look at is the total loan amount. As long as you move up or can justify the new loan, you're fine.

Hope this helps and good luck.