VA FORECLOSURE FREQUENTLY ASKED QUESTIONS

What is a VA foreclosure?  When a homeowner has a mortgage guaranteed by the Department of Veteran Affairs, and that borrower defaults on the mortgage, the home is foreclosed on and, in most cases, it is then acquired by the United States Department of Veteran Affairs

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Aren’t VA foreclosures the best deal out there?  Sometimes they are a bargain, but not always.  VA markets the homes it has acquired at or near fair market value.  Determining your parameters with your agent will answer this question.

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Is it true that VA gives these homes away for pennies on the dollar?  This may have been true in the past, but not anymore.  While VA may be somewhat negotiable in pricing, their goal is to get the highest price in the shortest amount of time.  Remember, as a taxpayer, it is your money they would be giving away.

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Do I have to occupy the home or can I purchase it as an investment?  You may buy the home to live in or you may buy it as an investment.

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How and where can I get financing to buy a VA acquired home?  VA offers vendee financing on many of the homes they own.  This is a great option, especially for the investor buyer.  The down payment and interest are very competitive (as little as 5% down for investors).  For owner occupant buyers, VA, FHA, or conventional loans may be a better option.  In any case, VA does require a prequalification by Bank of America in order to submit an offer with financing conditions.

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Will VA do any repairs on the home?  VA may do some repairs as they deem necessary to market the home, but VA is offering the home in “AS-IS” condition.  You will be given an opportunity to have a home inspection after your offer has been accepted by VA.

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What is the next step?  Call one of our VA Foreclosure Specialists:

Richard W. Overall, REALTOR® 254-394-6637