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What
are VA Acquired Homes?
Much
like HUD, homes that are financed using a VA guaranteed loan and
foreclosed upon due to non-payment of the loan, are acquired by
the VA in order to recuperate any losses incurred from the
foreclosure.
Once
acquired, the VA will try to list the home for sale as soon as
possible. Home are available to veterans and non-veterans,
owner occupants and investors. Most importantly, VA offers
financing (known as VA vendee financing) with attractive interest
rates, low or no down payments, and no prepayment penalty.
Once
the property is ready for market, it enters into a
"Competitive Bid Period" where all bids received during
this timeframe are considered as being received simultaneously by
the VA.
If
an acceptable bid is not received on a property during the
competitive bidding period, the property is placed on the
"Extended Listing" in which bids are accepted on a
first-come, first-serve basis until a successful bid has been
received or the extended period expires.
If
no successful offer is received and the extended period has
expired, the property will be withdrawn from the market, reviewed,
and re-listed on a new competitive listing.
Each
property that the VA offers is sold "As-Is". Each
listing will have specific terms and conditions for the sale,
including a minimum down payment requirement for owner
occupant buyers (investors are required to put a minimum of 10%
down).
The
listing price for each VA home is set by VA personnel.
Though there is no offer/counteroffer process for buying VA homes,
VA will consider reasonable offers below the list price.
However, the VA reserves the right to accept, refuse, reject, or
waive any irregularity in an offer.
Most
importantly, the VA will not warrant or guarantee the home or be
responsible for any undisclosed or hidden defects on the
properties offered for sale.
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