Government Foreclosures: HUD Homes and VA Homes
Today, foreclosure homes are becoming more and more popular with investors because of their great return potential. Government foreclosures, which include HUD homes and VA homes, have received much more attention form buyers because of the advantages they have over other foreclosures.
HUD Foreclosures
These foreclosed properties are offered by the Department of Housing and Urban Development. Re-possessed by creditors from the owners due to mortgage default, these HUD government foreclosure homes are sold below their average market prices. If you are a public servant like a teacher, policeman or fireman, you are in for a great treat. HUD government foreclosures can be purchased at greater discount under the Good Neighbor Next Door program. Buying HUD government foreclosures can only be accomplished through an HUD-certified real estate broker like MostlyForeclosures.com. These brokers will have complete and updated listings of available HUD government foreclosures from which you can choose from.
VA Foreclosures
On the other hand, VA government foreclosures are offered by the Department of Veteran Affairs (DVA). These homes were seized from owners by mortgage lenders for failure to meet payments. Once the DVA pays for the claims of the mortgage lender, the property will now be in their possession. To recover losses, the government will try to sell these VA government foreclosures as quickly as possible. Since these homes are initially offered to owner-occupant, you can have a great chance of owning one easily.
All government foreclosures are purchased via a sealed-bid auction. Your real estate broker will submit your offer together with an earnest money within the Offer period. The bids must meet minimum price set and if you made the highest bid, then you are now the proud owner of one of these government foreclosures.
