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.
Funding... Does 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 down payment.
A Dash of Red Tape There's always some.
Make 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 difference!
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 unique.
Disclosure Before Foreclosure You should know.
Before 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 home.
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?
YOU 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.
Let's Look at Some Pitfalls to Avoid...
...when considering buying a foreclosed home.
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