Can a non US citizen buy VA foreclosed properties and obtain VA Vendee financing?
Yes absolutely. According to Mr. Grant Singleton Chief of the Property Management Section in Phoenix AZ, as long as he can run a credit check and you have the income required.

Does VA sell raw land under this program?
No because VA does not finance raw land. There have been a couple of properties in the last few years which were condemned and had to be torn down leaving the raw land.

What does "AS IS" condition mean?
This means VA will not do any repairs or replace any stolen or damaged fixtures during the term of their ownership, unless they have allocated the funds to do certain repairs prior to the property being posted for sale.

Are all of the properties run down dumps which require lots of repairs?
No they are not. In fact most of the properties we have dealt with over the last five years have been almost rent ready. Normal painting and clean up, but yes there are those exceptions which require extensive repairs, and we tell you about them in the listings.

Do I have to be a veteran to participate in the VA property sale program?
No you don't have to be a veteran. VA only gives preference to a vet when there is a tie in the net to VA on a particular property. Remember it was a veteran who gave the house up to VA!

How many properties can I buy from VA?
In reality as many as you want. There is a rule which says "any buyer may only have 5 active VA vendee loans in a six month period". or if the VA sells any of your active loans, then you have access to 5% down loans on a one for one basis. However you can still purchase more if you agree to put 20% down and the underwriting requirements don't change.

How much is the total cost of buying a VA property?
First you have your downpayment of 5% of the bid price. Then you should figure in 3% of the total bid price for closing costs. Closing costs include a 2.5% VA Funding fee, prepaid interest, taxes and insurance.

How does Abercrombie Investment Corp. get paid for its services?
As in most real estate transactions the "Seller" pays the broker commission. In this case the VA. We act as the buyers broker and we do not represent VA, they represent themselves.

Will Abercrombie Investment Corp. expose my bid to anyone else or their bid to me?
Absolutely NEVER!! We will tell you how many bids we have received on a particular property, and when we can get access to the figures we have the data on how many bids were submitted on each property and what the winning bid was. Since the "public bid opening" has been eliminated we cannot furnish all bid amounts, just the winning bid.

How do I know how much to bid for a particular property?
All we can tell you is what we know from the history of the sale program. Look at our recommended bid on the property list to analyze the financial numbers. Then adjust your bid, up or down, based on your own investment requirements. You just have to take a look at each individual property and make your decision.

What happens after I win the bid?
VA will process (underwrites) your loan for approval. It has taken about 30-45 days from approval until we get the papers. However VA has promised it will speed up this part of the process considerably. Then HomEquity (John Murphy) in Las Vegas will fed ex your papers to you along with a final figure you need to close. HomEquity will send you a management agreement and an authorization for services if you are going to have them manage the property. Return it to them with your set up fee ($250.00) and reserve account funds, ($300.00) plus the rehab funds what ever that amounts to and you will be off and running.

How much does HomEquity charge to rent and manage a property?
HomEquity charges $200.00 to place a tenant in the property. Then a monthly charge of 9% of the rents collected monthly (subject to change).

What's the big deal about the VA sale program vs. HUD or private Bank foreclosure?
In our opinion the VA program is the best there is for the following reasons;

  1. Only 5% down to non owner occupants (investors). Ask your local banker about this!
  2. VA carries the paper themselves as VA vendee loans, until they remarket the loans.
  3. 5% down gets you expedited underwriting with no verification of funds or employment.
  4. Normal investor loans require 25 to 30% downpayment and full underwriting to meet HUD guidelines.
  5. When your loan is sold you then have an assumable (with qual) loan with a national lender.
  6. Most of the properties we have been selling are pretty close to being ready to rent saving rehab dollars and time. Remember you can't finance the rehab with VA in the purchase.

How do I buy a VA Property?

It is a very simple and easy thing to do, easier than creating these pages as a matter of fact. There are only four pieces of paper to partially fill out and return to Abercrombie Investment Corp.
  1. Offer and Purchase Contract.
  2. Customers Credit Statement "you have to fill this out completely".
  3. VA Net Sheet va form "all you do is sign it".
  4. Notification of Offer va form "fill out part of it"

The only problem we run into is the necessity of "original signatures" on the forms and the short time period between list and bids due dates.

We have a letter explaining just what you need to do in filling out the forms for a bid submission.

The only form we must have to submit the bid is the Notification of Offer which is faxed to VA in Phoenix.

However when you win, the rest of the bid paperwork must be sent to Phoenix along with the original Notification of Offer form. This dictates that we have the forms on file in our office for you so we can discuss the bids with you via phone or E-mail or Fax and then get it submitted to VA. Contact Abercrombie Investment Corp. providing your home mailing address or Telefax number and we will get the forms off to you promptly. Remember even if there isn't a property on this list you are interested in you might find one on the next list to die for, so why not have the forms on file with us.

Of course there is the earnest money of $500.00 which the VA requires to Broker to have in their possession at the time the bid is submitted, but we don't want your money until you are ready to bid. The earnest money should be in the form of a cashier's check made payable to "Department of Veterans Affairs"

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