The main goal of the U.S. Department of Veterans Affairs is to contact the local estate agents and list available REO properties on the Multiple Listing Service (MLS). In fact, VA doesn’t hold auctions. Its aim lies in recuperating capital from foreclosed properties through fair market pricing. The Department of Veterans Affairs purchase properties that fell into foreclosure. In this way, they help military workers purchase houses at affordable prices.
You might have interested can you buy a foreclosed home with a VA loan. You can do it in two different ways. Firstly, the county sheriff tries to sell the foreclosed property to the highest bidder. In some cases, sheriff fails to sell the property and then he sells it to the lender and then people can find the house available on the MLS.
The VA-eligible borrower can apply for the property at the auction. In this case, he has to transfer the biggest sum of money in 48 hours. If the property occurs on a regular real estate listing, it becomes closed (usually within 30 days).
There are certain advantages of the purchase through the VA such as no cash down, no monthly mortgage insurance premiums, no pre-payment penalties and others.
If you aren’t a military worker, you can consider buying a foreclosed home with FHA loan.