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Foreclosure/Making an offer on VA foreclosure


Hello! My husband and I are making an offer on a home tomorrow. It is a VA foreclosure that has been on the market for 73 days. At this point, we are the only buyers interested in it, as it is a long ways out of town. They have dropped the asking price twice since it has been on the market. We are trying to decide what we should offer on the home. The asking price today is $79,000. We considered offering $60,000, but are thinking that might be low balling it too much. I guess my question is with a property that has been on the market this long, with no other interest, is the VA more likely to go lower on the price? Also, do they ever cover closing costs? Thank you for any advice you can give!

Hello Amber.

Thanks for asking the question. VA and FHA have similar guidelines. In the first 30 days on the market they will only accept 88% of the current asking price. Day 31-60 they will accept 84% of the asking price. Day 61-90 they will accept 82%. they rarely ever go lower then 82%. They will just lower the price till it is sold. Now those percentages are the net which means that closing costs and commissions are on top of that. That is usually about 7% so since that home has been on the market for 73 days, I would offer roughly 90% of what the asking price is. So $71,000 is where it will probably sell at today. Hopefully this helps.



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Brian Pitcher


I can answer all questions in regards to short sales, strategic default, foreclosures, loan modifications, and most questions regarding real estate law.


I have closed well over 100 short sales in the past 3 years and that is the work we primarily do. We teach people how to keep their home if they can or how to bail on it in the best possible way without any recourse. I have taught many public seminars to accountants, loan mod counselors, attorney's and also many other real estate agents all over the country. I also know how to deal with the very tough second mortgages in the negotiations as well as mechanic liens and default judgements.

I have a bachelors in Spanish with a minor in Economics from the University of Utah. I have also been a Realtor for 8 years closing well over 200 transactions. I am a KW instructor for Short Sales and Foreclosures.

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