Many individuals or couples looking for homes to purchase are checking into VA foreclosure property for sale. This type of property can often be purchased at a bargain price, in spite of the home being worth much more. VA home mortgages are mortgages made available to Veterans. Banks usually offer these loans to Veterans at a lower interest rate and better terms because the Department of Veteran Affairs (VA) guarantees them.
The VA guarantees that they will cover the balance of the loan in the case that the Veteran fails to make the promised payments. Unfortunately, many VA loans still wind up in default because the Veteran can no longer afford to meet the monthly payments.
Mortgage foreclosures are at an all-time high today with increased interest rates, a fluctuating economy and the high cost of homes. Even people that get help purchasing a home, like the Veterans, cannot often afford to continue making the payments. Even though the VA often offers financial help so the Veteran can keep their home, they still often lose it to foreclosure. You’ll often find many listings of VA foreclosure property for sale at real estate agencies as well as the local Department of Veterans Affairs office.
When a loan for a VA home is in default and becomes foreclosed, the VA purchases the mortgage from the bank and becomes the new owner of the home until it can be sold. They put the home on a list of VA foreclosure property for sale and take bids on the home. Many real estate agencies have a listing of VA foreclosure property for sale. Specific criteria are involved when purchasing VA foreclosure property for sale.
Some real estate agencies will list the VA foreclosure property for sale for designated time (e.g. 10 days) and accept bids during this time. All bids are considered as received simultaneously. At the end of this time, the real estate agency and the VA office handling the sale review all bids. The highest bid is usually give the top priority, although the VA may often refuse this bid and make a counter offer. The VA homes are sold on an “as is” basis, with the VA doing no repairs.
Vendee financing is a program that helps individuals with the purchase of VA foreclosure property for sale. The borrower can save on many of fees that normally occur with a home mortgage including appraisal fee, flood certification fee, tax service fee, mortgage insurance and more. Unlike the VA loans, which are available only to Veterans, the Vendee Financing programs helps non-Veterans and Veterans purchase VA foreclosure property for sale.