VA Homes for Sale Can Be Bargains Too!

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VA homes for sale is another area of government owned foreclosed homes that is a popular source of bargain homes for homebuyers and investors.

Where HUD Homes For Sale is the result of a foreclosed FHA insured loan, a VA home foreclosure is the result of a foreclosed government guaranteed veteran loan.

The Department of Veterans Affairs (VA) acquires properties as a result of foreclosures on VA-guaranteed and VA-financed loans. These acquired properties are marketed for sale through a property management services contract that was awarded to BAC Home Loan Servicing, LP.

One of the first questions most people will ask is do they have to be a veteran to buy a VA foreclosed home. The answer is no, all VA foreclosed homes are available for sale to both veterans and non-veterans.

The process of buying VA foreclosed homes and HUD homes is similar in some ways and a lot different in other ways. VA home foreclosures and HUD homes are both listed on local MLS systems by real estate agents but HUD homes has a 10 days waiting periods before offers are accepted, VA foreclosed homes no longer have a ten day waiting period.

Unlike HUD homes, owner-occupants do not have an advantage over investors in submitting offers for VA homes for sale. Owner-occupants and investors are treated the same when making offers for VA foreclosed homes.

HUD homes use an on-line bidding (auction) system where there is very little contact between the listing agent and selling (your) agent. You submit a bid and the acceptance of the bid is all done on the computer, no human contact.  Although recently HUD has changed their marketing strategy where the listing agent is more involved in the transaction it is still pretty much all done on the computer.

Making an offer on a VA home loan foreclosure is similar to making an offer on a seller-owner property. Although you do get the necessary forms on-line to submit an offer, all offers are sent to the listing agent. The listing agent then submits the offer to a representative of BAC Home Loan Servicing, LP.

If an offer is not accepted on a VA home for sale, VA will counter offer just like a seller-owner would do. The process of getting an accepted agreement can be slower than bidding on HUD homes.

Just like HUD homes, VA foreclosed homes are sold in “AS-IS” condition. VA homes for sale have the reputation of being in better shape than HUD homes. The theory is that FHA will made loans to about any one and VA are limited to veteran loans. I have seen HUD homes that have been trashed and ones that are move-in condition, same with VA foreclosed homes.

One big advantage with VA homes for sale is VA will provide financing for some of the VA foreclosed homes. It is called “Vendee Financing”. Vendee financing is available to both veterans and non-veterans. It is not a veteran loan.

VA homes for sale can be great way of finding a bargain home to live in or for an investment.  Again an important point is that you do not have to be a veteran to buy a VA foreclosed home!

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