The recession and loss of jobs has hit Columbus, GA. There are a large number of foreclosed homes. including government foreclosed homes. According to Realtytrac.com, 1 in every 497 homes in Columbus received a foreclosure notice in May 2010. There were 965 foreclosed homes with an average foreclosure sale price of $102,544. With bargain prices like that investors and buyers have been taking advantage of purchasing Columbus foreclosed houses.
Finding Government Homes
When borrowers with FHA loans default, HUD acquires ownership of the foreclosed homes. HUD is not in the business of selling real estate so they list their homes with local Realtors who market them in the MLS. The good thing about HUD homes is you do not need a large down payment and they are sold at between 10% -40% below market value. If you qualify for an FHA loan, you can put as little as 3.5% down.
When borrowers default on VA loans, The Department of Veterans Affairs (VA) acquires ownership to the foreclosed homes. The VA needs to dispose of their foreclosure listings as soon as they can so they offer them at cheap prices with attractive financing options. The VA will offer vendee financing to buyers whether or not they are veterans. You can obtain a low interest rate if you qualify for VA financing. When you buy VA foreclosure listings you are getting an opportunity to buy the foreclosed houses between 10-40% less than market value. VA properties are marketed through BAC Home Loan Servicing, LP. VA foreclosure listings are also listed on the Internet and in the MLS with Realtors. Anyone that qualifies can buy foreclosed VA homes.
Advantages of Buying Government Foreclosed Home?
All government homes are sold in an “as is” condition so buyers are responsible for conducting inspections and making their own repairs as necessary. The VA and HUD do not give any buyer concessions for repairs. Even if the homes need repairs, they are still great bargains because they are sold at substantial discounted prices. You will need to work with a Realtor to make an offer though.
Right now there are a number of good opportunities to invest in non-government foreclosure properties in Columbus as well. There are REO’s, short sales, and foreclosure auction properties. REO’s, short sales and government foreclosed homes offer less risk because you can conduct inspections and obtain title insurance. Auction properties have more risk because you generally cannot conduct inspections, and title insurance is not available. You are responsible for evicting any former owners and tenants from the property as well. The prices are cheap so it’s worth looking into buying foreclosure properties at auctions. You have to pay cash for them at the close of the auction. If you are thinking about buying foreclosed homes, now is a great time to find them in all price ranges and neighborhoods.