VA Foreclosures – Answers to Frequently Asked Questions

Read these frequently asked questions about home foreclosure. Discover common foreclosure concerns, understand the foreclosure process, and how the foreclosure law varies from state to state.

authorManuel Martinez
Jul 30, 2013

Learn about the VA foreclosure process and how to find VA foreclosure property opportunities.

What is a Department of Veterans Affairs foreclosure?

One niche area of foreclosure investing is buying government-owned properties from the Department of Veterans Affairs. The Veterans Affairs helps veterans buy homes by guaranteeing loans to the lenders. When a veteran defaults on a VA-guaranteed home loan, the VA buys the property from the lender and offers them for sale – frequently at below market prices.

Who can buy a VA foreclosure?

Anyone can purchase a VA repo home. The VA acquires properties as a result of foreclosures on VA-guaranteed loans. VA foreclosures are offered for sale through a national network of real estate agents working through Ocwen Financial Corporation. 

Do I have to be a veteran to buy a VA repo?

No. All VA repo properties are available to both veterans and non-veterans.

Where can I locate VA foreclosures?

VA homes for sale are listed by local listing agents through the Multi Listing Systems (MLS). Investors and homebuyers can view the properties on RealtyTrac’s website at, on Ocwen’s website at and on a government site at Investors interested in buying a VA repossession property should contact the listing agent identified on the website.

How do I submit an offer for a VA foreclosure?

After you find a VA home foreclosure that you want to buy you should have a real estate agent or the selling agent prepare a purchase contract and complete all the necessary VA documentation. Your agent will submit your offer through the listing broker for approval. To make an offer you must go through a VA-approved agent and use the proper government forms. The listing broker’s name, email, telephone number and fax number are found on the listing page of Ocwen’s website.

What are the benefits of buying a VA property?

Under the VA home loan program, veteran borrowers can purchase a home with no money down. VA home loan requirements are fairly liberal when compared with other loan programs. For example, under many conventional loan programs, personal bankruptcies within five years of applying for a loan would disqualify the applicant. Under the VA program, however, veterans with bad credit or bankruptcies could get a VA home loan. Other benefits offered to veterans under the VA program include:

  • No down payment required.
  • VA closing costs and other fees can be financed.
  • VA loans can be assumed.
  • No mortgage insurance premiums.
  • No mortgage prepayment penalties.

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