What are VA Acquired Homes?
Much like HUD,
homes that are financed using a VA guaranteed loan and foreclosed upon
due to non-payment of the loan, are acquired by the VA in order to
recuperate any losses incurred from the foreclosure.
Once acquired,
the VA will try to list the home for sale as soon as possible. Home are
available to veterans and non-veterans, owner occupants and
investors. Most importantly, VA offers financing (known as VA vendee
financing) with attractive interest rates, low or no down payments, and
no prepayment penalty.
Once the
property is ready for market, it enters into a "Competitive Bid Period"
where all bids received during this timeframe are considered as being
received simultaneously by the VA.
If an acceptable
bid is not received on a property during the competitive bidding period,
the property is placed on the "Extended Listing" in which bids are
accepted on a first-come, first-serve basis until a successful bid has
been received or the extended period expires.
If no successful
offer is received and the extended period has expired, the property will
be withdrawn from the market, reviewed, and re-listed on a new
competitive listing.
Each property
that the VA offers is sold "As-Is". Each listing will have specific
terms and conditions for the sale, including a minimum down payment
requirement for owner occupant buyers (investors are required to put a
minimum of 10% down).
The listing
price for each VA home is set by VA personnel. Though there is no
offer/counteroffer process for buying VA homes, VA will consider
reasonable offers below the list price. However, the VA reserves the
right to accept, refuse, reject, or waive any irregularity in an
offer.
Most
importantly, the VA will not warrant or guarantee the home or be
responsible for any undisclosed or hidden defects on the properties
offered for sale.
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