Our sister company, Visio Monetary Companies, provides both buy and money-out refinance loans to residential investors. Some homes are purchased with loans guaranteed by the Federal Housing Administration (FHA) or the Division of Veterans Affairs (VA). Foreclosure filings in 2017—which embody default notices, scheduled auctions, and bank repossessions—dropped to the lowest stage since 2005.
As a result of cash requirement often related to auctions, a VA borrower with sights set on a certain foreclosures may wish to see if that home fails to sell at auction and is obtainable by the lender. Foreclosures hit a 12-year low in 2017, and the distressed properties stay increasingly tough to seek out in many markets.
Whether or not you’re shopping for a stay-in or funding property, you’re buying smarter while you purchase government homes for sale. Except purchase value can pay mortgage(s) and closing costs in full, lender’s approval of price and terms of sale might be required (i.e. short sale).
This strategy is preferable because it enables the bank to avoid the eviction process altogether whereas ensuring that the property remains occupied. There are various factors to consider when shopping for a foreclosed house in comparison with a conventional dwelling buy.