VA Foreclosures Can Be Profitable Investments

Just like any other lender, the Department ofbargain prices, fix up and flip for generous profits.
Veteran's Affairs expects buyers to whom they lendBut be careful, you must be very cautious when you
money for property to pay their mortgages on timeshop for VA foreclosures, and do your research
until the debt is paid off. Sometimes however, likebefore you commit to any investment. A good rule
any other lender, the VA is forced to take back aof thumb is that you should be willing to consider a
home through foreclosure.purchase if there is just cosmetic damage to any
The VA insures mortgages for serving and retiredproperty. That means paint, minor repairs and clean
personnel in the armed forces. When one of thoseup. Unless you are very experienced with rehabbing
borrowers defaults on their VA-insured loan thereal estate it is wise to avoid a property if real
lender turns to the VA for help. The VA reimbursesstructural damage exists.
the lender for the defaulted loan and the lender turnsA moldy bathroom or a flooded cellar may look and
the foreclosed property over to the VA. The VA issmell off-putting, but they're easy enough to fix, and
not in the property management business, so VAtheir presence can drag down a property's purchase
wants to sell the property quickly and recapture itsprice enough to make it a good investment.
monetary loss.A VA foreclosure can be perfect for an investor or a
Right now there are tens of thousands of homes inbuyer/owner who wishes to purchase a property
the VA's inventory. Most of these are sitting vacantbelow market value. In order to obtain a listing of VA
waiting for buyers. You don't have to be in theforeclosures, check with a local realtor who will have
military service or even a veteran to be eligible toa list on the local Multiple Listing Service. You could
buy one of these homes, but you do have to meetalso search the Internet under the search phrase "VA
the VA's qualification requirements.foreclosure properties", and adding the zip code of
Affordable financing incentives and interest rates arethe area where you wish to purchase property.
offered to all interested buyers so that the VA doesHere is a web site that lists available VA foreclosures
not have to pay taxes, insurance, and maintain the
foreclosed homes for any longer than absolutelyThere have been a wave of foreclosures with the
necessary. They are eager to find qualified buyersdownturn in the economy. It may a perfect time to
and welcome all comers.gather a group of investors together to buy VA
When searching for a home in a lower price bracket,foreclosures by the dozen at deep discounts.
VA foreclosures are a great place to start. Since theThere are other types of foreclosures besides VA
former owner was unable to make their mortgageforeclosures that you should consider. They include
payments it is likely that the property was notbank owned real estate, preforeclosures and
properly maintained making it a good investment forforeclosure auctions. They all offer opportunities to
the savvy investor. Often times it is the more runbuy property at bargain prices.
down and unsightly properties you can pick up at