When land purchased which have an excellent Virtual assistant loan enter into property foreclosure, brand new Va can buy the house right back regarding financial and you can put the home back in the industry, usually on a much lower price than ever before.
VA-owned features is going to be domestic or commercial, and therefore are either known as repo home, as with “repossessed.” Shortly after a borrower non-payments to your their home loan, the latest Va acquires the property and must pay the first mortgage amount back once again to the financial institution. And then make upwards for this payment, the fresh Va offers our house again, this time so you’re able to some one, not only to people with Virtual assistant entitlement.
