If you find a government foreclosed home in Independence, MO, you should grab it because government foreclosures are sold up to 50% below market value. HUD and the VA offer their foreclosure properties for sale. HUD foreclosures can be found at the HUD website or by checking with a local Realtor. The VA website can direct you to the VA foreclosures, or you can contact the BAC Home Loan Servicing, LP which markets VA foreclosures or through a local Realtor as well. You can also find government foreclosures advertised on various Internet sites such as RealtyTrac. In fact, RealtyTrac has a couple Independence government foreclosures advertised on their site currently.
HUD acquires FHA foreclosed properties. After the borrower defaults, FHA pays the lender off and purchases the home. Title goes back to HUD, and they offer the foreclosed home for sale at discounted prices. When purchasing HUD homes, you do not need a large down payment. You may also qualify for a FHA loan to purchase the home with as little as 3.5% down payment. The VA offers vendee financing on their foreclosures even if the buyer is not a veteran. You may be eligible for a low interest rate VA loan. Check with your VA approved lender.
Why Buy Government Foreclosed Home?
Government homes are sold in an “as is” condition at deep discounted prices because the government is not in the real estate business and wants to get rid of their foreclosure properties quickly. They offer buyers a good way to get into the market because the properties are cheaper than if the buyer were to purchase a privately owned resale property in the same neighborhood. Opportunities in REO’s (bank owned properties) and pre-foreclosure properties should be considered as well. Right now, there are 652 bank owned properties being offered for sale in Independence, MO and a 106 trustee private sales.
Purchasing HUD Homes
• Must be purchased as your primary residence.
• Investors are allowed to bid when there are no other primary residence buyers.
• You may be eligible for FHA financing. FHA mortgages require FHA mortgage insurance.
• Properties are sold as is.
• You may be eligible for a FHA 203(k) rehab and purchase loan.
• HUD only accepts full price offers.
• HUD will pay your closing costs up to 3% of the purchase price if you ask for it in the purchase agreement.
• You must make an offer through a local Realtor. HUD will notify your real estate agent within 48 hours after the bidding closes.
• HUD will pay your real estate broker’s commission up to 6% of the purchase price.
Purchasing VA Homes
• You must make an offer through a local Realtor.
• The VA will pay up to 6% of your closing costs if you request it in the purchase agreement.
• You may qualify for a VA loan even if you have not served in the military.
• VA pays your real estate broker’s commissions up to 6% of the purchase price.
• There are no warranties on VA foreclosed houses. Properties are sold as is.
• You will need a $1,000 earnest money deposit.
• Buyers are required to close in 22 days for VA vendee financing, 30 days for cash purchases and 60 days for any other type of financing.
Government foreclosed homes sell quickly so act right away if you locate a home you want to buy. Be sure to have the home inspected because HUD and VA do not make repairs. You are getting a deep discounted property with built in equity so there is a lot of competition for these properties. Do your due diligence and get your financing lined up or have your cash ready to close quickly.