Research property conditions before buying foreclosed Virginia homes from the state government
If you want to become a homeowner, you can do so by buying foreclosed Virginia homes from the state government. You may find a dream home that fits your budget by searching state foreclosures. However, you should be aware of the possible disadvantages of Virginia state government foreclosed homes.
Advantages of Virginia state foreclosed purchase
The biggest advantage of a Virginia state foreclosed purchase is the low cost. Many government-foreclosed homes sell for less than their market value. This is because the government is only trying to recoup its loss on the original loan, not make a large profit.
Another advantage of purchasing Virginia state government foreclosed homes is that you may qualify for government-backed mortgage financing or assistance with your closing costs, escrow costs or down payment. This is a great advantage if you do not qualify for traditional financing.
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Disadvantages of Virginia state foreclosed purchase
Buying a foreclosed property also has some disadvantages. One disadvantage of state government foreclosed homes is that properties are sold in “as-is” condition. This means that any problems or issues with the house will become your problem. These homes often sit unoccupied for an extended period of time, which can result in damage from rodents, freezing temperatures or storms. If you are looking at Virginia state government foreclosed homes, be sure to research the property and budget for the cost of repairs before you buy.
Buying foreclosures process and costs
The process of buying foreclosed Virginia homes from the state government may also seem like a disadvantage to some people. Buying foreclosed homes is more complicated than a traditional home sale and can require more money up front. Whenever possible, you want to pay for a home inspection, which runs $300-500. Depending on the results, you may not buy the home after investing in the inspection.
Additionally, an auction sale requires a cash down payment of typically 10 percent or a cash payment for the entire sale. And in most cases, you will either want to work with a real estate agent or be required to work with one, which also may cost you a fee.
You need to weigh the advantages and disadvantages of each Virginia state government foreclosed home to determine if there are more positives than negatives. Being aware of potential problems helps you find a good deal on a new home or investment property. To start shopping now, go to Reply! for free foreclosure listings in your area.