Federal Homes
Wednesday, March 14th, 2007Federal homes include HUD and VA foreclosures and other federal foreclosed homes; in other words, any government foreclosed property.
Federal homes such as VA properties, are sold ‘as is’ and though some of them are in very clean condition and good repair, some of them will need a lot of work. Find one or more that you are interested in and contact the proper agent to arrange to see the properties.
Federal homes such as VA properties can be purchased by anyone—an owner occupant or an investor. Also, you do not have to be a veteran in order to buy a VA foreclosure. If you should decide to purchase on of these federal homes such as a VA property, you can have your Realtor/agent prepare an Offer to Purchase and Contract of Sale VA Form as well as completing all necessary documentation.
For anyone considering buying federal homes it is highly recommended that assistance be sought by a housing counseling agency approved by the Department of Housing and Urban Development (HUD).
If federal homes you are considering fall under HUD, you still should locate a real estate broker who can submit a bid on your behalf. This can be done online, too. These homes are typically sold by bid in a specified time frame. The highest reasonable bid is the one accepted. If, however, the home is not sold within the initial offer period, you can submit again until the home is sold. Bids can be placed seven days a week including holidays. Of course, they will not be opened until the next business day. Winning bidders are usually notified through their agent within 48 hours.
If federal homes you are looking at fall under the USDA/Rural Development, you should contact the local USDA/Rural Development office. They will provide you with the most current and accurate information regarding the property you are interested in as well as your eligibility for potential program benefits. Dependant on your circumstances and the status of the property you want, your method of bidding and purchasing the property may vary.
If you are looking for a property strictly as an investment such as for a ‘flip’ or resell, you need to check with the listing agency to be sure you are allowed to purchase the property for this purpose such as described in the VA information above.
Federal homes can be excellent buys and even greater investment opportunities, provided you can buy them for such a purpose, but either way—they are a bargain!
