Veteran Affairs Foreclosure Deal

[Nick Paul]

Quick question to those on BP....I'm looking at a purchasing a foreclosure property that is currently owned by the Secretary of Veteran Affairs.

My questions......has anyone purchased a foreclosure from the Secretary of Veterans Affairs? If so, did you run into any issues with obtaining title free and clear of any liens and/or encumbrances?

I don't typically close without obtaining a title policy to ensure I'm receiving title free and clear of any and all liens. However, those deals have not been owned by an extension of the government. My thought is that in order for the Secretary of Veteran Affairs to be able to sell the property they would have to hold title free and clear of any and all liens or encumbrances. Thus, I've considered forgoing a title search on the purchase of the property. It would save some money on the purchase of the property, as I will be responsible for providing a title policy upon closing (as that is customary in New Mexico). I've tried to think of any liens that may have slipped past the Secretary of Veteran Affairs but imagine they have already done an in-depth title search to ensure they are selling the property free and clear. Anyway, I'm likely going to purchase the title policy simply to ensure that I am receiving title free and clear. Just wanted to see if anyone on BP has purchased a Veteran Affairs foreclosure and waived their right to obtain a title policy on the property.

Thanks for your feedback!

[Mark Ferguson]

Always get title insurance if you can! I had a HUD deal where HUD did not have clear title to sell and it was not discovered until 6 months after the sale. Luckily the buyers paid for the title insurance and the title company worked it out, but if they did not have title insurance who knows what would have happened.

VA does not pay for buyers title insurance in any State, they are like HUD in that respect. VA has a new company selling their properties for them Vendor Resource Management, instead of Bank of America. They are currently swamped with properties and under staffed. Especially the title companies.