Foreclosures, Short Sales, Auctions, Low Income Properties & VA Loan

Please refer to the condition guides for single family, multi-family, and condos properties. It is not impossible, but it is more improbable, that foreclosures and short-sales, will work with a VA loan.

  1. Foreclosures, often the condition of foreclosures is questionable too bad. The properties are often ‘as-is’, meaning the seller (Bank) will not fix anything. Also, there is no way to know when the property will close, if ever. This could be due to unforeseen title issues, & condition issues.
  2. Short-sales are when the lender and seller make an agreement, to try to sell the property. This happens when the seller is in financial difficulty, and cannot make the mortgage payments. Often the condition of short-sales are questionable, too bad. The properties are often ‘as-is’, meaning the seller will not fix anything. Also, there is no way to know when the property will close, if ever. This could be due to unforeseen title issues, & condition issues.
  3. Auctions, the VA will not do them. The close window is 30 days or less. There is a large deposit involved. And the properties are ‘as-is’.
  4. Low income properties. The VA will not do these, as there are deed restrictions, on who you can sell too. The VA wants the veteran to have the freedom to sell or rent, as they please.