Buying your first (or second) home is one of the most exciting things we do in our lives. From the time we become adults or get married, buying a home is usually first on our list of what we want to do in our lives. When we finally are able to make that large purchase, we think we're set for life and have a home to grow old in. Unfortunately, many people are not able to continue making the mortgage payments and lose their homes to foreclosure. These homes are usually put up for sale at an auction and sold to the highest bidder. Another type of foreclosure is a VA home foreclosure. When a Veteran puts a home with the help of the Department of Veterans Affairs (VA), a bank or lender gives the loan, but the VA guarantees the loan.
Unfortunately, even with the guarantee given by the VA, many Veterans still cannot keep their home and it ends up in a VA home foreclosure. When these foreclosed government homes are put up for sale, they are an excellent opportunity for a prospective homeowner to get a home at a bargain price. For years, people have been getting bargain homes by purchasing homes in foreclosure. Although there are not as many VA home foreclosures as HUD homes or traditional mortgaged homes, there are still many of them available. If you are looking for a bargain home, a VA home foreclosure may be the perfect opportunity for you to finally get your dream home.
Many real estate agencies carry VA home foreclosures for sale. They usually offer the home for sale for a certain period, often called the "Simultaneous Offer Period". During this period, all bids that come in on the home are considered as coming in at the same time, or simultaneously. At the end of this time, all the bids are reviewed to see if they've met the criteria set by the VA. If they have not been met, the home will continue to be for sale.
If the VA does not accept your bid, they will make a counter offer just like any other seller. A few things to remember are that the VA will not make repairs on the home and they are sold "as is". In some cases, the VA will help with financing of the foreclosed VA home through a program called VA Vendee Financing. This program is available for non-Veterans as well as Veterans. This is a great opportunity to obtain a home at a bargain price. Contact your local VA office for a listing of VA home foreclosures in your area or do a search online. There are many of them out there.
A foreclosure is always a tragic event. You've saved for so long to have the home of your dreams and you're about to lose it because you can't keep up on the payments. There are many different types of home mortgages including VA (Department of Veterans Affairs), HUD, FHA and traditional type mortgages. A VA or HUD foreclosure is similar to other foreclosure with some exceptions. A VA loan is a mortgage given to a Veteran by a bank, but is guaranteed by the VA. If the Veteran fails to make the payments, the VA will pay the loan so the VA foreclosure is done through the VA rather than the bank.
A HUD home is any residential property consisting of 1 to 4 units. The home is obtained because of a foreclosure of a mortgage from FHA. HUD will be the new owner and will sell to any interested buyer including a Veteran with the help of a VA loan.
After the VA or HUD foreclosure, the VA or HUD is the new owner of the home rather than the bank. Whether it's a VA, HUD foreclosure of an FHA loan going into the foreclosure the result is still devastating to the owner.
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Some important tips to avoid having a VA or HUD foreclosure include:
• Don't ignore the program as though it doesn't exist. It will be easier to catch up on your loan when it's only behind a month. Contact your lender at the first sign of financial problems. Don't avoid contact from them when they try to contact you.
• Know your mortgage rights. Read the loan documents you signed when you took out your mortgage. Find out what the laws are in your state and what kind of timeframe you're working with in your state.
• Prioritize how you spend your money. Your mortgage and healthcare are the two most important expenses you'll have and they should always be made on time, even if it means cutting back on some other expenses. Cable bills, telephone packages are both example of expenses that you may be able to cut back on to help you make your mortgage payment.
• Contact an HUD housing counselor for help. The U.S. Department of Housing and Urban Development (HUD) provides low cost or free housing counseling. These HUD-approved counselors can help you understand your finances and help you with your lender if you are having difficulties meeting your mortgage obligation. If your mortgage is a VA loan, the VA department can often offer financial assistance to the Veteran to avoid a VA HUD foreclosure.
• Utilize your assets. If you have assets such as jewelry, a second car, whole life insurance policy or similar items, you may be able to sell them for the cash you need to catch up on your loan and avoid foreclosure.
• Avoid foreclosure recovery or prevention companies. These companies are usually frauds or will charge you an extraordinary amount of money to help you. The amount of money you'll end up paying them could have gotten you caught up on your mortgage. Be especially suspicious of those that contact you.
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