• The 4 Steps of the Foreclosure Process
• What are HUD Homes? The Basics
• What Are Bank Owned Homes?
• Mortgagee Letters from the FHA
• How to Buy in a Foreclosure Auction
• Why Mortgage Qualification is Key for Buying Foreclosures
• Homes for Sale - The Details behind Government Foreclosures
• How You Can Benefit from Tax Foreclosure Properties
• Pre-foreclosures: What Goes On Before the Auction Sale
• How to Buy a HUD Foreclosed Home

What Are VA Foreclosures?

Created as an initiative to help veterans of World War II through a variety of benefits, the Department Veterans Administration - known since 1989 as the Department of Veterans Affairs - has assisted in the home buying process by guaranteeing loans to United States Veterans.

If the Veteran is delinquent on their taxes or mortgage, though, the house can be repossessed much in the same way as a standard foreclosed home can. If this is the case, the house is put up for auction, and anybody - not just Veterans - can take advantage of a VA foreclosure. It's in these circumstances that a lot of real estate investors are able to find significant savings because the cost of the home will be far lower than the true value of it.

Benefits to Veterans under the VA Program

There are five major factors that work in a Veteran's favor when it comes to purchasing a home.

• No required down payment
• Closing costs and other fees can be financed.
• VA loans can be assumed.
• There are no mortgage insurance premiums.
• You won't incur any mortgage prepayment penalties.

In addition to these five factors, Veterans benefit from the fact that lenders like working with the VA. That's because the VA is able to guarantee that loans made to Veterans will be repaid in full if the Veteran must default on his or her payments.

Investing in VA Foreclosures

Much like standard foreclosures, VA foreclosures can be purchased for the fraction of its initial price if their auction is not largely attended. Remember, though, that all sales are "as is", meaning that investors cannot rescind on their offer if they discover something about the home after they've signed the deed. So inspect a home as well as you can.

After you've inspected the home, talk to your real estate agent and have him or her prepare your offer - which must be done on a VA contract form. Your agent will then submit the offer to Ocwen. You should expect to wait up to four weeks before receiving notification about your winning bid. You will only hear back from Ocwen if you hold the winning bid.