A VA home foreclosure is not exactly the same as a regular foreclosure process. As we know, it is always a special day when you buy your first (or even your second or third) home. Buying a home is a goal most people have had since they were young and it is the first step many newly married people take together.
When you buy a home, you always imagine that it will be the place you live for the rest of your life. Sadly, this is not always true because you can end up getting behind on your payments and even have your home foreclosed on.
What is different in a VA home foreclosure?
When your home is foreclosed, it is sold through an auction to the person willing to pay the most. A VA home foreclosure is a little different. Homes bought by veterans through VA loans are financed by banks but the VA guarantees the loans themselves.
Even though the VA guarantees VA home loans this way, it is not uncommon for veterans with VA loans to lose their homes due to their inability to pay their mortgage. The VA retains ownership of these homes and sells them at auction to recoup their costs and avoid losing money on the home. You can get these homes for a good price in most cases.
VA foreclosed homes sold in a VA foreclosure auction
Foreclosed homes have been bought by investors for years and they are usually able to turn them around and sell them for a profit.
Most foreclosures are through traditional mortgage companies or HUD loans that have foreclosed but there are a few opportunities to buy VA foreclosed homes. You can find a great house for a great price with a VA home foreclosure.
You can find out about VA home foreclosure opportunities from your local real estate offices in some cases.
The homes are available for a short time period called a Simultaneous Offer Period in which anyone can make an offer on the home and when that time period is over, the VA considers all the offers at once as if they got them at the exact same time.
If the VA does not get a bid that meets the criteria, the VA will start over and offer the home for sale again.
In what condition are the VA foreclosure properties?
Often the VA will counter the bid you make to them on VA home foreclosure properties. An important thing to keep in mind with VA foreclosure properties is they are sold as-is and you will be responsible for all repairs that are needed.
In order to facilitate a sale, the VA may offer special financing through a program they call Vendee Financing which can be used by people who are veterans, as well as people who have never served in the military.
This makes VA home foreclosure properties a great investment and a great deal for anyone considering getting into real estate or looking for their dream home. You should look for VA home foreclosure properties in your area.