The VA... And Homes.
How Does VA Sell Homes? The
basics you should know.
Similar to HUD, the VA sells homes that it
acquired as the result of foreclosures on VA guaranteed-loans. You can find VA
home listings on the Internet, through the 46 regional VA offices, or by getting
on the mailing list. Regional offices that DON'T have a web site will put listings
in local newspapers.
The VA says that it sold 24,700 properties in 1999.
Talk to a Broker They can help.
VA properties are made
available through local real estate brokers, and are sold to homebuyers, investors,
veterans and non-veterans. Real estate brokers show the homes and assist prospective
purchasers. VA pays the broker's sales commission.
VA Do Financing?
If you are a veteran or a member of the military, be
sure to investigate a VA loan. Most applicants qualify for a loan with a ZERO
A Dash of Red Tape There's always some.
sure your agent is knowledgeable about the VA sales procedures. For example, VA
doesn't use standard industry sales contracts, all offers must be on VA forms;
and each regional office has additional requirements.
Know Your ABCs
of Buying from VA and HUD
Before we finish, let's talk about brokers.
Unique Situations... With Familiar Concerns.
Buying a Foreclosed
Home Different situation.
Buying a foreclosed home is a unique choice
for the homebuyer. You'll need to look beyond that temptingly low list price and
know you're making a solid investment. What will the property be worth in several
years, if you have to resell?
Find the Right Broker It makes a big
The knowledge of an experienced broker will help you make
the right decisions. Look for someone with experience in foreclosure sales. But
remember that the rules of the game DON'T change, even though foreclosures are
Disclosure Before Foreclosure You should know.
you hire the agent, he or she should give you a disclosure form that describes
the four types of representation:
Ask your agent to disclose their contractual
relationship with whomever (Freddie Mac, Fannie Mae, HUD, etc.) is selling the
Remember that your broker's fee is likely to be a percentage of the
final sales price. So even though the selling organization might claim to "pay
the broker's fee," in this case it really comes out of your pocket.
While you're at it, have you figured out how much you can afford?
Set the Final Price
Don't forget that. Listen to your broker's advice
but remember that it's up to you to look out for yourself.
at Some Pitfalls to Avoid...
...when considering buying a foreclosed
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