New to Real Estate · Snohomish County, WA · Member since 2024 · 7 posts · 7 votes
Hey all!
I'm spending this week learning about foreclosure investing and a question came up that I hope someone could lend some insight.
I'm a Navy Veteran and would like to use my VA loan to make my first home purchase sometime next year. Since a VA inspector would need to verify the condition and value of a home before the money is lent, does this mean there is no way to buy a foreclosure with VA loan financing?
New to Real Estate · Snohomish County, WA · Member since 2024 · 7 posts · 7 votes
2y
But what about buying at auction? From what I understand you don't get to do a thorough inspection of the house before auction. Would a VA loan only work if you put in an offer before foreclosure or after the bank buys it?
New to Real Estate · Snohomish County, WA · Member since 2024 · 7 posts · 7 votes
2y
But what about buying at auction? From what I understand you don't get to do a thorough inspection of the house before auction. Would a VA loan only work if you put in an offer before foreclosure or after the bank buys it?
Rental Property Investor · Elmira NY · Member since 2023 · 143 posts · 143 votes
2y
Just from my limited looking at auctions I dont believe you get a ton of time between "winning" the bid and when you have to pony up the cash. I believe you have to put cash down within a certain time period (5-10 days) and then no inspection and also full balance pretty quick. I do think you can normally get funding in that time frame and it doesn't have to be actual cash for balance but I do think the deposit has to be cash, debit, certified check etc.
VA I think most want the benefit of zero cash down so thats a bit of a draw back and the inspection is rare so approved for VA wont go through with funding due to lack of inspection.
Again I have never bought a house at auction nor am I in the Military so this is just from my research but not tested.
Paradise, CA · Member since 2015 · 1k+ posts · 871 votes
2y
It's interesting how many people don't read the entire post. No, you cannot use your VA eligibility to bid on a home at a foreclosure sale in New York.
Once the sale has occurred, if the property reverts back to the lender (Meaning it didn't' sell to a 3rd party), then yes, you can use your VA eligibility to purchase, if the seller (Bank/servicer/credit union, etc.) accepts your offer, and, if the property meets VA requirements (Section 1, etc.).
I sell the REO my bank takes back and I don't like VA because they try to stick me with fees and try to make me do repairs that we just aren't going to do. It's a great program for a veteran and a good program for a seller to participate in if the property is in good shape but not always the best option for a foreclosed property.