Q–In response to that recent question about VA home loan fees, VA Pamphlet 26-7, the “VA Lender’s Handbook,” contains details on eligibility, appraisals, credit standards and allowable fees.
VA Pamphlet 26-4, “VA-Guaranteed Home Loans for Veterans,” is usually provided to veterans when they obtain a Certificate of Eligibility.
Both of these publications are available on the VA Internet site at www.va.gov/vas/loan/lenders.htm.
VA also has information on VA-foreclosed properties for sale at www.va.gov/vas/loan/homes.htm.
Keith Pedigo
Director,
VA Loan Guaranty Service,
Washington, DC 20420
A–Thank you for sharing that valuable information. The letter to which you refer was from a home-seller whose buyer was obtaining a VA mortgage. She was inquiring about the VA loan fees she was being asked to pay. The VA-approved lender was uncooperative in providing those pamphlets to clarify the fees.
Thanks to you, for those with Internet access, we now know where to look for further VA home loan details.
Q–How can a homeowner cancel escrow and pay property taxes and insurance directly? My lender repeatedly refuses my request to do this.
A–If you have a VA, FHA or PMI (private mortgage insurance) home loan, the lender can and will insist on monthly payments into an escrow impound account for 1/12th of the property tax and homeowner’s insurance payments.
There’s nothing you can do, except sell or refinance with a mortgage that doesn’t require escrow payments.
However, if you voluntarily agreed to an escrow account when you obtained your home loan, and if you have an on-time mortgage payment record, you might be able to get your escrow account canceled.
Some states, such as California, have laws requiring conventional loan lenders to cancel escrow impound accounts when requested by borrowers.
In the absence of state laws, however, it’s up to the borrower to convince the lender to cancel the escrow account.
Mortgage lenders fight borrowers on this issue because escrow funds are “free money” to the lenders (until the property tax and insurance payments are due).
Sorry, there’s often no easy way to cancel escrow impound accounts without fighting your lender.
Q–My mother has entered an assisted living residence. She wants to sell her house, a project my brother and I will have to handle.
The house is in Mobile, Ala. I will be going there to get the house ready for sale. There is a mortgage of about $12,000. What should we do?
A–I’m certain there are many excellent Realtors in Mobile who will be pleased to handle the home sale. However, be sure the mortgage payments are being kept current so they don’t go into default.
Presuming your mother is mentally competent, ask her to give either you or your brother a signed, notarized power of attorney form to sell the house. Then you can list it for sale with a Realtor, accept a purchase offer and sign the deed on her behalf. A local real estate attorney can further advise you.
When the house is physically ready to sell, before listing it for sale, please interview at least three successful Realtors who sell homes in the vicinity. Neighbors can probably recommend agents to interview.
Each agent should give you a comparative market analysis showing recent sale prices of comparable neighborhood homes, asking prices of similar nearby homes listed for sale, asking prices of recent expired listings that didn’t sell, and each agent’s recommended selling price.
Before listing the home for sale, check each agent’s client references. Ask those previous sellers: “Were you in any way unhappy with the agent and would you list your home for sale again with the same agent?” Please don’t sign a listing for longer than 90 days, just in case the agent turns out to be lazy or otherwise unacceptable.
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Have a question about real estate? You can write to Robert Bruss in care of Tribune Real Estate Features Service, 435 N. Michigan Ave., Suite 1400, Chicago, Ill. 60611. Answers will be provided only through the column. Please note that laws vary from state to state and area to area. Consult an attorney for specific legal advice.
