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Basically, a house becomes a repo when a homeowner defaults on a mortgage and the lender, or guarantor (usually a bank) seeks to
recover its losses. Repossession of a house occurs when a bank (or lending institution) is unable to sell the property via
an auction sale.
Repossessed homes (foreclosures) are also sold by the VA and HUD. Many government home repos can be bought below their market value
with a small, or sometimes no down payment.
Government House Repossessions
Looking to buy your first home, or maybe you're a real estate investor? Government house repossessions can afford a buyer excellent bargains.
Qualifying for these loans is very easy, with government agencies carrying their own financing ...with favorable terms. If you've got a steady job
and income, you can buy a house repossession.
The VA (Veterans Administration) has lots of foreclosures & repossessed homes. When a veteran homeowner defaults on a VA guaranteed
loan, the veteran's lender forecloses on the loan. In most cases, the VA acquires these properties after a foreclosure sale, then sells properties to the
general public. You don't have be a veteran to buy repossessed homes.
* How Government VA Repos Are Sold:
- To buy a VA repo home, you fill out and submit an Offer to Purchase Agreement through a real estate broker.
- VA repos are sold via licensed real estate brokers who participate in the VA sales program.
- Properties are offered for sale at fair market value; they're sold for the highest offer through a sealed bid process.
- Also see: Government repo auctions
Bank Home Repossessions
A bank repo house is different from a VA repo. Many banks will give you a list of their repos for sale.
A bigger selection can be found on the Internet from reliable publishers providing state-by-state lists of home repossessions.
This makes it more easy; simply contact the ®Realtor or agent listed by a bank, make an offer, then sell a repo for profit, or keep it as an investment.
Bank home repos & properties can offer the safest deal for inexperienced foreclosure buyers. There's little risk, no taxes, no liens and no tenants to evict.
A lender who's eager to sell might also be willing to offer attractive buyer terms.
Since banks have already performed an appraisal, buyers might not have to pay an appraisal fee. Lender deals typically include title insurance, which also removes
much of the risk that accompanies buying repo homes earlier in the foreclosure process.
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