Posted by Tony on October 22, 1998 at 22:38:04:
Sorry folks for posting 3 times. I’m new at this. I didn’t think it took the 1st two.
VA Foreclosures - Posted by Tony
Posted by Tony on October 22, 1998 at 22:27:41:
From what I understand when buying a forclosed property from the Veterans Administration that if you put less than 25% down the VA holds the deed until the loan is paid off. Is that rule set in stone? Or is it negotiable? Like if my payments are current say after 3 or 5 years can I then get the deed? The reason I’m asking is that as an investor I may want to pull cash out from the equity and use it to buy more property. Without deed to the property who’ll lend me $$$ against that property?
Also, does the VA give clear title to the property they sell from their inventory? I would think that all liens get wiped out at the foreclosure including tax liens after all it is the government selling the property. Why would they sell their property and hold the mortgage to someone else if it already has liens on it? To foreclose again? If clear title is given then is it necessary to buy a title search and title insurance?
PLEASE HELP!
Tony
Funtoy6159@aol.com
Re: VA Foreclosures - Posted by Dave T
Posted by Dave T on October 23, 1998 at 23:56:37:
I bought a VA foreclosure recently with 100% VA investor financing. I received a copy of the deed after it had been filed with the county registrar of deeds. The VA has a lien recorded so does not need to hold the deed.
The VA gives a special warranty deed that only guarantees you that the VA did not do anything to cloud the title. While it is true that the VA does try to pass clear title, it is such a small expense to purchase the owner’s title insurance at settlement.
I always buy the title insurance to protect my investment. I hope that it never has to be used. You wouldn’t consider owning your house without homeowner’s insurance. You buy it without even intending to ever need it. Same reasoning should apply to owner’s title insurance.