Is there anything I should know be for bidding on a VA Repo house?
tomwilla asked:
I am getting ready to place a bid to buy a house that is a VA foreclosure. I was told it would be slightly different than an offer on a regular home being sold.
I know there will be more paper work. But is there anything else I should know? Thank you for any advice.
December 22nd, 2009 at 10:26 pm
The process can vary based on the market. Some of the time the VA offers different terms if the property is in an area where they are having problems selling.
Are you looking to live there or is this an investment? Are you a veteran? Is the condition of the property such that it is not habitable?
Check to see if the VA is offering any form of financing or other specific terms. There should be a disclosure form indicating all the details the VA is expecting. That is the reason for the extra forms. The VA wants to know how well you fit the assumptions.
Assuming the property is habitable and had no major defects then the loan process will be normal if you are going conventional.
Definitely assume that any property that has been vacant for an extended period could have issues. Houses are meant to be lived in with utilities turned on. When they are off for long periods of time the weather is a factor. Also animals and other forms of life can start to take over or otherwise move in. Look for damage caused by vandals.
Check the documents as you are likely buying as-is. That means you get what you get and it is up to you to verify that what you are paying is a fair price. Some great deals if you line up your assumptions with your offer. Some surprises are to be expected no matter how well you do your homework so budget for the unknown.
December 25th, 2009 at 12:53 pm
We have purchased from Hud. Remember that if others are bidding VA Will take the best bid. I bought a HUD home (they were asking 32,000) so I bid 26,500 and got it. I sold it 4 years later for 52,000, with about $4ooo in repairs and free rent to my son while he did the repairs. So good luck
December 28th, 2009 at 1:41 am
these guys might know,