VA Foreclosures - Not Just For Veterans
Like any other lender the Department of Veterans' Affairs expects the home buyers to whom it extends mortgages to make their monthly payments in a timely fashion until the mortgage is paid in full. But, like other lenders, the VA is faced with borrowers who default on their repayments for various reasons. And the VA will act to recover its funds from defaulting borrowers, through the process of VA foreclosures.
VA foreclosures are available for purchase to anyone, even those who are not veterans. The VA, in fact, is eager to sell its foreclosure homes so that it can avoid having to pay taxes, insurance, and maintenance costs on them. So they will offer very favorable financing incentive and interest rates to potential purchasers.
If you are willing to overlook an unattractive, run-down property, because the previous owner was unable to afford the house, and the maintenance effort to keep it in prime condition, then a foreclosed VA home could be ideal. These homes are often in the lower price ranges and can be a bargain, particularly if you invest the time and money to renovate it for a future sale.
There are cheap VA foreclosures to be found that can be purchased quite cheaply. Few people are interested in these properties so there is not much competition. You need to have them inspected to find out if they have major structural problems. The properties with these types of problems you need to stay away from due to repair costs. Properties that can be easily fixed such as a new bathroom is needed or it has a basement that floods are the ones to buy.
A VA foreclosure is typically perfect for real estate investing and those wanting to purchase a home at less than its market value. To find foreclosure homes, you can visit a realtor as most VA foreclosures are listed on the local Multiple Listing Service by local real estate agents. You could also perform an internet search on "VA foreclosure homes" and the zip of your target area.
Foreclosures by the VA are only one of many kinds of government foreclosures. Also, there are privately foreclosed properties, by banks and other financial institutions, auctions, and preforeclosures available as well as government foreclosures. All are worth considering for real estate investing.
Government foreclosures can be one person's misfortune but your gain. When mortgages through the Department of Veteran's Affairs aren't paid, the home is foreclosed. You don't have to be a veteran to buy VA foreclosures. These properties are often the ugly, run-down property that no one wants. They are often well suited to real estate investing as they can be bought cheaply and with a little fixing-up, sold for a profit. Just be sure to have the home inspected for major structural flaws, which are too expensive to fix. Scan the foreclosure listings from the VA and try to find an inexpensive property with minimal or low-cost repairs that will increase the home's value for resale.
Published August 9th, 2007
Filed in Business, Government, Real Estate
