FHA And VA Foreclosures

If the bank ends up with the property after the auction, it is usually because investors feel it is overpriced.

An REO is visible proof the lender made a bad loan and now has the administrative costs of maintaining it.

Sometimes it takes a while before the REO is a bargain. In this market any hope of making a profit is non existent. If expenses are going up while the value is coming down you have an opportunity to get a good deal. As stated earlier get to know the people at various banks. Let them know that your available to buy that home that is costing them money. Best of all the lender finances the whole deal.

FHA And VA Foreclosures

If the loan originated from the VA or FHA they often get the final title after the lender has taken back the property through foreclosures.

Contact the VA in your area for more information on how to proceed with these foreclosures.

After foreclosures the VA sets a minimum price for a bid and sells to the bidder who mails in the highest bid over the minimum.

HUD handles the FHA foreclosures and you need to get on a mailing list before they will send you details of FHA repo listings. Contact the HUD office in your area for more FHA information. Most of the bidders are brokers who specialize in buying for owner occupied buyers they have already lined up. Very few speculators are buying FHA and VA foreclosures this way.

It is much easier inspecting FHA and VA foreclosures because the properties are always empty. Most repo's need some fix up. Here is a form that should help you analyze the property. As with all properties, your position appreciates as more time passes. The longer they have a repo property on their books the more it costs them, so the pressure increases for them to unload the property.

Remember, lenders will always make bad loans, obviously! If you decide to invest in bank REO's and FHA and VA Repo foreclosures you could turn this area into a long term business.