VA acquires real estate properties when banks foreclose on homes that were guaranteed by VA. Starting in 2004, VA will not sell foreclosed properties directly but through a private company. Ocwen Federal Bank FSB is the contractor authorized to sell all Real Estate Owned (REO) properties of VA. Ocwen will list all properties for sale in Multiple Listing Service (MLS).

We will give more details about VA foreclosure home sales once Ocwen starts its operations at full scale.

VA-Owned Homes: Real Estate Owned (REOs) by Veterans Administration

Real Estate Owned (REOs) by VA (Veterans Administration) are sold like HUD-owned homes. Here are some features:

These homes are available for the general public, not necessarily to veterans.
VA-owned homes are sold “as-is,” carrying no warranty.
Homes that are not sold on determined dates are put on sale on a daily basis.
You can bid only through real estate brokers who are registered to sell VA-owned homes.
Earnest money starts from $500.
VA can pay some of your closing costs.

For more information on Home Loans by Veterans Administration.

Difference: HUD insures loans for first-time buyers; VA guarantees loans for military personnel.

You can purchase HUD and VA homes only through licensed real estate agents and their approved brokers. You cannot assign HUD and VA contracts.