Foreclosure in 90302>Question Details

only1greendi…, Home Buyer in Inglewood, CA

How realistic is it to buy a foreclosure or bank owned home with a VA loan?

Asked by only1greendiva@gmail.com, Inglewood, CA Tue Jul 1, 2014

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VA loans require the seller to pay for the Termite Report AND provide Section 1 & 2 clearances. Additionally, they require the seller to pay for most escrow-related fees. Banks will NOT pay these fees - they sell properties "AS-IS", will not pay for inspections and so on. Additionally, the home must have a Section 1 clearance prior to close of escrow - typically, banks will not provide any clearances and, even if the buyer was able and willing to handle the clearance themselves, banks will not allow them access or permission to do any work on a home prior to close of escrow.

Bottom line, in most cases, unfortunately, the answer is NOT REALISTIC.

Here is a post that may be helpful:

Veterans and VA Loans: Losing The War At Home
http://www.trulia.com/blog/carl_medford/2009/11/veterans_and…
0 votes Thank Flag Link Wed Jul 2, 2014
If there are multiple offers on the property, you probably will not be chosen. With VA and FHA buyers, I usually try to find homes with less competition.
0 votes Thank Flag Link Wed Jul 2, 2014
It is extremely realistic.
HOWEVER, you must use common sense.

There are many types of bank owned properties.
Some are in abandoned condition.
Some are in tear out condition.
Some are in clean out condition.
Some have been completely renovated.

An HONEST offer on the latter can be very successful.
Do so within the 'first look' window and you'll be good to go.

Best of success,
Annette Lawrence, Broker/Associate
REMAX
Palm Harbor, FL
727.420.4041
0 votes Thank Flag Link Wed Jul 2, 2014
PS: Don't dismiss the investor flipped houses. These folks have a fat margin and can be very accommodating for VA and FHA buyers.......with an HONEST purchase offer. You will find the prices to be identical. However, with the investor house, you are not negotiating with a bank.
Flag Wed Jul 2, 2014
It will depend on the condition of the home. the best deals are the ones that need work but VA wont7 finance them. there are REO homes such as Freddie and Fannie who fix the homes up that may pass. A good buyer broker experienced with REO homes can easily hellp you.
0 votes Thank Flag Link Wed Jul 2, 2014
It's possible..in theory...but not likely. Banks sell these homes as is and most won't meet VA standards. But I have yet to see a house that was cheap enough or special enough to justify the risk and aggravation involved with buying a foreclosure or a short sale. There are TONS of dumpy homes priced below market value on the market, where you can deal with the seller and not a bank. Buy one of those instead.

I've written a best selling book called Buying a Home: Don't Let Them Make a Monkey Out of You. It'll teach you how to buy a home and get a mortgage without getting ripped off. Follow the link below.

Best of luck!

Alysse Musgrave
214-734-3863
Alysse@HelpUBuyAmerica.com
http://www.HelpUBuyAmerica.com
0 votes Thank Flag Link Wed Jul 2, 2014
depending on the market you are in and the condition of the property it is highly likely to get financing on any property with a VA loan.
0 votes Thank Flag Link Tue Jul 1, 2014
Diva,
Anything is possible, but you'll need to check out the property very thoroughly before you get too far along. VA requires any health or safety issues to be resolved prior to closing. Banks don't like to do inspection response, but they will.
You need to find listed properties and work with a knowledgeable agent regarding VA requirements and what could create an issue.
0 votes Thank Flag Link Tue Jul 1, 2014
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