I'm in the middle of negotiating with the VA on a foreclosure deal and I'd like to know about any pitfalls that I may be unaware of before making my counter offer. I understand that they don't guarantee the title, but am I able to back out of the deal if I can't get my own title insurance because they're unable to convey a clear title?
Thanks in advance!
Read your contract and VA addendums.
Bill: What the VA doesn't tell you is that they in fact do a title search for their own benefit before placing their properties on the market.
Although they don't provide an owners policy, they want to ensure they are able to convey clear title. I have been involved in 6 VA sales in the past18 months and all had clear titles.
David- Thanks for taking the time to reply and give great insight!
They don't pay ANY closing costs. So there only peeps can't buy the house (they have non allowables). VA foreclosures limit their audience to only conventional or cash buyers because of the rules. So you tend to have only less "first time home buyers" competing depending on your area of course ;)
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