Government foreclosed homes offer buyers/investors opportunities to buy cheap homes in Little Rock Arkansas. In fact, many first time home buyers and investors buy government foreclosed houses because they are so affordable. They are usually sold at 10%-40% below market value and require low down payments. HUD and VA offer their foreclosed homes for sale. You will need to work with a local Little Rock Realtor when purchasing HUD and VA Little Rock homes because they are listed with Realtors. HUD and VA will pay your Realtor’s commission.
Where to Find Government Foreclosed Homes?
Your local Realtor can give you a list of foreclosed government houses from the MLS. You may also want to go directly to the HUD and VA websites to see what properties are available in your area. Since HUD and VA are not in the real estate business, they need to sell their foreclosure listings quickly. When purchasing a HUD foreclosure, you can get your own financing or obtain FHA financing if you are purchasing the home for your primary residence. Same rules apply with VA except VA offers vendee financing and a low interest rate to buyers who are veterans and non veterans. Anyone that qualifies can buy foreclosed HUD and VA homes.
Why Buy Government Foreclosed Homes?
The main reasons VA and HUD foreclosed homes are so popular are they are cheap and affordable. All government foreclosed houses are sold in an “as is” condition so you are responsible for inspections of the home. The VA and HUD do not make repairs or give any buyer concessions for them. However, the homes are sold at deep discounts so they are still really good bargains. Government foreclosures require low down payments so you can afford a home that you may not otherwise be able to buy right now in an area with much higher priced homes.
Government Tax Deed Sales
Just about every state conducts tax deed sales. When a homeowner does not pay their property taxes, the county puts a lien on the property and forecloses on it. If there is a mortgage, the lender will pay the taxes off. If there is no mortgage, then the homes are offered for sale by the taxing municipality via tax deed auctions to help generate revenue for the county. The money is used for public services and schools. The property is sold for the amount of back taxes plus any county fees, interest and court costs. Property taxes are a much smaller percentage of the market value of the home so investors/ buyers are getting a property at a substantially discounted price. Tax deed sales are advertised in the local newspaper and on county websites. No Realtors are involved. The property is sold to the highest bidder at the auction for cash. The new buyer gets a deed to the home and all rights to the home free of any mortgages or deeds of trust and liens. Anyone can purchase tax deeds. You should do your due diligence first so you know the value of the property.
With Little Rock housing prices so affordable right now, purchasing government foreclosed properties is a great investment. You acquire property with built in equity because the homes are sold at such substantial discounts. Some homes do need work so be sure to have a property inspection. Now is a terrific time to invest in government foreclosed homes in the Little Rock and surrounding areas while these bargains last.