Buying foreclosed Virginia homes from the federal government: pros and cons

Buying foreclosed Virginia homes from the federal government can result in the home of your dreams at a bargain price. Be aware of the advantages and disadvantages of these sales, so you can sort the good opportunities from the potential money pits.

Advantages of government foreclosed homes

One of the main advantages of purchasing a foreclosed U. S. Department of Housing and Urban Development (HUD) home in Virginia is that you can often get these homes at prices below market value. These homes have been foreclosed because the homeowner defaulted on the loan. Because the mortgage was insured by the government, HUD now owns the home and needs to sell it for as much as possible. HUD is not generally out to generate a profit. There are hundreds of HUD homes for sale in Virginia, so you will likely find one that fits your needs.

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You may qualify for a Federal Housing Administration (FHA) loan program to buy a HUD home, which is a major perk. Financing options for buying Virginia homes foreclosed by the federal government include loans for first-time homebuyers, single parents, people in specific occupations, low-income families, community grant areas, fixer-upper homes and more. The FHA also has programs to assist you with down payments, escrow and closing costs.

Disadvantages of buying HUD homes

While buying foreclosed Virginia homes from the federal government has advantages, buying these homes also has disadvantages. The biggest disadvantage of a government foreclosure is probably its condition. These homes are sold “as-is” so any needed maintenance and repairs become your responsibility after you buy the home.

HUD homes have a tendency to sit vacant for extended periods of time. While the properties are often secured to prevent vandalism, squatting and theft, all three of these things can happen. Problems can arise from weathering if the property sits vacant a long time.

If you decide to buy a foreclosed Virginia HUD home after weighing the pros and cons, you will need to work with a HUD-approved real estate agent. Only agents can bid on HUD homes. Purchasing foreclosed Virginia homes from the federal government can result in a good investment. It can also be a great way for low-income and moderate-income families to achieve home ownership. However, when buying foreclosed Virginia homes from the federal government, it is important to remember the possible downfalls. To see all types of foreclosed homes for sale, go to Reply! for free listings.