Posted by darylfl on December 18, 2001 at 09:16:04:
Good point. Policies vary from state to state.
How to buy a foreclosed VA home? - Posted by KL in Va
Posted by KL in Va on December 17, 2001 at 16:09:25:
Apologies, I did an archive search for this but came up blank.
Found a great home, great n’borhood, okay price tag (3B/2.5B, 1716 sq ft, needs cosmetic work and appliances–$136k. Comps are at least that and higher)…will be available for bids the 19th. Are VA homes generally a “good deal”? Do they ever dicker with price or terms? Do you have to go thru the specified realtor, or can I choose a different one?(Don’t like the condescending one I just talked with!)
Any advice ?
Thanks,
Karen
Re: How to buy a foreclosed VA home? - Posted by darylfl
Posted by darylfl on December 17, 2001 at 18:57:13:
There can be opportunities to make positive cash flow from these properties due to very attractive terms (currently 6.25% in FL) and low down payment. Another plus to VAs is you can buy up to five properties in a six month period, and not have to make a large down payment. After five properties in six months, the VA requires 10% down. The attractive interest rate is available to owner occupants and investors alike. You have to follow VAs carefully on-line, and then have some luck because bidding competition is stiff, houses almost always going above ask price. Find the list of available properties in your city, and follow it for a few months, see how they come and go, information about what recent offerings have sold for is also available on-line. It doesn’t take a lot of time to follow this. If you see one listed as a “first come” remember you can bid on it any time regardless of the regular bidding cycle. then you are more likely to get it below ask price.(you may have to explain this to your agent as I have found that many in my town don’t know this) Go through agents until you find one that will work with you. They must be on VAs list.
Re: How to buy a foreclosed VA home? - Posted by David Krulac
Posted by David Krulac on December 17, 2001 at 17:38:36:
no, no, no and, yes
- not good deals, usually at market.
- they accept or reject no dickering
- don’t have to use specific realty agent
- you can use any agent who is registered with the VA
David Krulac
Re: How to buy a foreclosed VA home? - Posted by Rob FL
Posted by Rob FL on December 17, 2001 at 16:37:49:
Although each state office does things a little different, the general procedure is the same. Any real estate brokerage that is registered with the VA can assist you in bidding on the property.
The price is based on a recent appraisal of the “as is” value. Sometimes the VA will discount the price. In Florida, it used to be that the asking price was the minimum bid. Earlier this year they changed it to 85% of asking price as the minimum bid.
Some properties are offered on terms with a VA mortgage to investors with $1000 down. This really depends on the property. You can find out about the terms on the internet.
The VA’s website is www.va.gov.
Best wishes.
On the VA website… - Posted by JT - IN
Posted by JT - IN on December 17, 2001 at 16:25:49:
KL:
On the VA website (find an agent), there is a list of Realtors that you can use, who have pre-registered with VA, to be a representing broker/agent. You can select anyone on this list to deal with.
VA homes are generlly priced to the market, or slightly higher. Not what I would call a good deal. This will vary slightly, depending upon the competition for homes in your area. Some sell at asking price, and above, while other areas will discount the asking price usually up to 10%, andlower with few exceptions. There is a post earlier today, about this very topic.
As you have said, the comps are at the 136K or slightly higher. However, if the home needs cosmetics, then it may be worth something less than the 136K. Competition may dictate that the home will sell for the 136K, or even more. You never know, and the agent will be trying to get you to pay top $$ so they can make a sale. If your offer is not accepted, then you and the agent loses out on what you wnat; you the house, the agent the $$; so be careful here.
Remember, there are other houses, so don’t fall in love with this one. As has been stated before, “Never fall in love with anything that can’t love you back”.
Good Luck in your pursuit of this and other houses.
Just the way that I view things…
JT - IN
Re: How to buy a foreclosed VA home? - Posted by Dave T
Posted by Dave T on December 17, 2001 at 21:27:47:
In my market, the VA requires 10% downpayment for all investor purchases. The limitation on the number of sales which may be made to investors has been removed. Investors may purchase as many properties with VA vendee financing as they can qualify for, provided a minimum 10% down payment is made in all purchases.