VA Foreclosures And The Benefits They Offer

VA foreclosures are priced so low that a lot of people are after them. And because these properties interest so many buyers, VA foreclosures do not stay long on the market. With the home buyer no longer able to afford the payments, the Department of Veterans Affairs just want to get the money back they have invested in the property and definitely don’t want to have to spend for their upkeep either. Potential new homeowners and investors will find VA foreclosures a great bargain because with the market overstocked, you are likely to land a greatly reduced price on your purchase.

VA foreclosures are priced low people are after them

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What are VA Foreclosures?

VA foreclosures are properties that have been foreclosed by the Veterans Affairs. The Veterans Affairs assists veterans purchase homes by guaranteeing loans to the lenders. When a veteran defaults on a VA-guaranteed home loan, the VA purchases the property from the lender and offers them for sale, most often at below market prices. All VA foreclosed properties are available to everyone, both veterans and nonveterans.

The Benefits of Buying VA Foreclosures

VA home loan requirements are quite liberal compared with other loan programs, even veterans with bad credit or bankruptcies could get a VA home loan. These are all provided under the VA home loan program. Other benefits offered to veterans under the VA program include:

  • Requires no down payment
  • Closing costs and other fees can be financed
  • Loans can be assumed
  • No mortgage insurance premiums required
  • There are no mortgage prepayment penalties

Tips on Buying VA Foreclosures

Because VA foreclosures are sold as-is, you must be careful and do your due diligence. Before making a final decision to buy:

  • Inspect the property thoroughly. Check the physical condition and general shape of the property. Make sure repairs are manageable and nothing too major. Remember, once you buy the property, it is your responsibility to make or pay for all the necessary repairs needed for the property. If you’re planning to sell the property, the cost of the repairs should be well worth your investment.
  • Inspect the structural integrity of the property and stay away from properties that have major structural problems as repair costs can get out of hand.
  • To search for VA foreclosures, local Multiple Listing Service by local real estate agents are a great source
  • Search the Internet using “VA foreclosure properties” and the zip of your target area

VA foreclosures are perfect for real estate investing and those wanting to purchase a home at less than its market value as long as you know which property you want to put your money in.

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