VA foreclosures - Posted by Tony


#1

Posted by Gary on October 28, 1998 at 20:27:00:

Tony,

I have helped people purchase homes from the VA and no, they do not provide title insurance. You have to purchase that yourself but, they do give you clear title of the property. The title insurance is for the lender and never hurts to have one.

To get the best deals on VA foreclosures is to obtain your own financing, not from the VA. You can usually get the house for well below market value when the VA is able to become totally free of the property. Their goal is to free themselves from the property quick and easy. I have sold VA homes using FHA loans. I work with a lender who has a large bag of tricks.

My last deal was a young girl who could afford the down
payment but had no money for the repairs that FHA called for and with VA you can not touch the property before it is sold. We had the necissary estimates and we set up an escrow account for the repairs (repairs where minor, cosmetic). Once she was in the house, she did the repairs herself and received a full refund from the escrow account so she was able to pay her mom back the money. She got a 3 bedroom, 1500 sq ft ranch home at 20% below market value and she is not an investor.
Not bad for a 22 year old who just wanted a place to live.

Good luck investing,
Gary


#2

VA foreclosures - Posted by Tony

Posted by Tony on October 22, 1998 at 20:30:49:

From what I understand when buying a foreclosed property from the Veterans Administration 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 then can I 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 $$$ ?
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 they are part of the government. If so, why buy title search and title insurance? But I may be wrong. PLEASE HELP!
Thanks,
Tony
Funtoy6159@aol.com