VA Foreclosures And What To Look For

The Department of Veterans’ Affairs, like any other lender, extends mortgages to homebuyers on the basis that repayments will be made on time until the mortgage is fully serviced. However, borrowers of VA default on their payment for different reasons, which forces VA to act for recovery. The VA acts through the process of va foreclosures to get back their funds from defaulting borrowers.

You don’t have to be a veteran to buy a property that is a VA foreclosure. The VA is very often quite keen to sell its foreclosure properties so that they don’t have to pay the upkeep necessary to maintain it. Therefore, they quite often offer favorable financing and interest rates to prospective buyers.

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.

Be very cautious when you encounter va foreclosures, and do your research before you commit any investment. A good rule of thumb, in my experience, is that you should be willing to consider a purchase if there is cosmetic damage to any property but avoid a property if real structural damage exists. A moldy bathroom or a flooded cellar may look and smell off-putting, but they’re easy enough to fix, and their presence can drag down a property’s purchase price enough to make it a good investment.

A VA foreclosure can be perfect for real estate investing or a buyer who wishes to purchase a property below market value. In order to obtain a listing of VA foreclosures, check with a local realtor who will have a list on the local Multiple Listing Service. You could also search the Internet under the search phrase “VA foreclosure properties”, and adding the zip code of the area you wish to purchase your property in.

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 investment 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.

- David E. Williams