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The Fort Hood area has a relatively large number of foreclosures at any given time, comprising approximately 15% of home sold. Unlike the negative stigma foreclosures have in other markets, however, foreclosures in the Fort Hood area are often in relatively good condition, often needing just new carpet, paint and a few odds and ends.
Foreclosures can be an excellent option I highly recommend for getting a home $20,000-$30,000 under it’s “true” price, well suited for buyers with approximately $10,000 to put toward closing costs and cosmetic repairs.
Advantages of Buying a Foreclosure
- Excellent price
- Start with equity
- Well-positioned to turn into a quality rental
- Work with a no-drama seller
Disadvantages of Buying a Foreclosure
- As-Is / No Repairs
- Can be More Complicated
- May not be able to use a VA or FHA loan
- Few if any seller concessions like seller paid closing costs
- More money up front for closing costs and repairs
- More likely to have unforeseen issues
Process
The most common foreclosure bank in the Fort Hood area is the Department of Veterans Affairs. VA foreclosures make up nearly 2/3 of Fort Hood foreclosures. The offer process on a VA foreclosure uses a different contract than the typical resale deal, but is otherwise very similar to what you would expect during a normal transaction. You get an option period to inspect the home, just as you would any other contract.
Other banks may have slightly different terms. The second most prominent foreclosure banks are Fannie Mae (Fannie Mae Homepath) and the Department of Housing and Urban Development (HUD Homestore). Some post their foreclosures on sites like auction.com or Hubzu, which can be more difficult methods of buying a home and are sometimes limited to cash buyers only.
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