Purchasing a foreclosure is a really good real estate investment. The current economic climate precursor called the “Great Recession” has been experienced throughout the United States. The downturn resulted in many job losses and financial hardship. To compound the fact, many home loans were adjustable loans wherein the loan payments would suddenly and unexpectedly increase. The culmination was and is that many hardworking people are not able to pay their mortgage loan as agreed. Others, witnessing falling home prices, have decided to stop making payments on a home that has lost half its value. After several months and sometimes years of delinquent payments, the homes are returned back to the lender.
Some of those lenders were bailed out by the US government. As a result, the government took receivership of the failed banks assets (including foreclosures). The majority of these properties quickly become part of the growing number of available foreclosures for sale. Searching for these properties often takes a little more effort than finding traditional properties that are listed in the MLS or with a real estate agent. Seeking out a clearinghouse for government foreclosures and federal home loan info will reveal both the complete list of homes and the low down financing options to buy them. Here are some benefits of using VA Home Loan Centers to buy a government owned foreclosure.
VA home loan centers in the past only worked with veterans who have served the country in some form of military service. Currently, in an effort to stimulate the economy, VA home loan centers are making available government funded subsidized mortgage loans for non veterans. The FHA 203k rehabilitation loan is intended to be used to repair fixer uppers. For these loans you will receive money for home improvement and also to buy the house. The down payment can be as little as $100. Other government loan products issued by VA HLC include USDA $0 down rural and farm loans.
Looking for the best property is not the first step in the government foreclosure purchasing process. It is very important to not skip the qualification process and apply for a VA loan before searching for homes. The reason is that most foreclosure bids require pre-approval. It is important to receive a pre-approval letter directly from VA HLC or an approved lender. In addition to this, VA HLC requires that all recipients are to certify that they will live in the home. For FHA 203k loans, there is a one year requirement. For VA loans, there is no requirement.
Taking advantage of the empty foreclosures in the area is a great way to become a homeowner. The VA home loan program is also open to first time buyers who meet the loan qualifications. Stop by or contact your local VA Home Loan Center for more information on obtaining a home through foreclosure.
