Your Questions About VA Home Foreclosure

Donna asks…

Can a VA home loan be used to buy a home in foreclosure?

I’m in the military and interested in purchasing my first home. However most of the homes in my area are in foreclosure; the ones that are in my price range at least.

I called at one in particular but the realtor said that the bank doesn’t like going with VA b/c the foreclosure wants all the costs to be covered by the buyer.

Other than talking to a realtor (which is what I’m going to do on Monday anyways) can a VA home loan still be used to buy a home in foreclosure?

Couldn’t the closing costs just be included in the the cost of the home itself?

Oh and I’m residing in the state of Florida.

Admin answers:

Yes it can, however the VA may require an escrow of monies to make repairs and most lenders aren’t going there. You might consider purchasing a “short sale” instead. At least you can see the property is most likely being maintained and would you still have some negotiating room with the sellers instead of the lender.

John asks…

If I am winning bid on, ” as is” VA foreclosure and the home inspection reveals problems. Am I obligated ?

Or does the VA let you negotiate the bid amount?

Admin answers:

If you bid at the foreclosure sale, that part of the process is between you and the court. The VA doesn’t have anything to do with it. You’re better off dealing with the VA once they own the property and you are negotiating to buy it from them directly.

Most court let you pay a deposit towards the full bid once you win the auction — maybe 10% of the bid — with the balance due in X number of days. If you only paid the deposit, you could just not pay the rest. You would lose that deposit, but if losing the deposit would result in a significantly lower loss to you, it may be worth it to just take it on the chin and walk away. If you paid in the full bid at the sale, you are probably SOL. As a last resort, you could file a motion with the court to vacate the sale, laying out all the problems with the property, and hope the judge rules in your favor. It’s unlikely you would win, but worth a shot. Good luck.

Thomas asks…

How long does it take to go from a ratified contract through to closing on a foreclosure home? In VA?

Admin answers:

Right now… the banks are flooded with paperwork on these neglected homes. Normally, it might not take more than a 2-3 weeks, but in this climate there really is no telling.

Robert asks…

Who can we talk with in regards to a VA foreclosure vacant home for about 4 years now considered unihabitable?

Admin answers:

Ask the Commissioner of Revenue in the county where the house is located or we can connect you with pre-screened real estate agent.

Laura asks…

Va home loan after foreclosure?

Anyone else been through this? We did not use our VA loan when we purchased. We went through foreclosure. How long after forclosure can we use VA loan?

Admin answers:

Remember its still a loan that you must be approved for it just backed by the FED. Most lenders will require at least 24-36 months before you will be eligible for a VA loan.

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