USDA Foreclosure Purchase

[Geoff Sdano]

I'm wondering if anyone has any or suggestions on how to approach this situation.

I'm looking at a property in Wisconsin for personal use, possibly a vacation rental, that is currently owned by someone who is no longer living at the property. They haven't been for almost three years and there were squatters there for a time. They apparently have a loan through the USDA and are in the process of being foreclosed on due to delinquency of payments (not yet owned by the USDA). The property itself looks to need some work, but am unsure to what extent at this time.  Hopes would be to get a good deal on this as the land and location can't be beat.

My question is, what approach would make sense to move towards a purchase of the property? With a USDA loan, is their likelihood that a short sale may be accepted? Would you start with contacting the owner or the USDA for more information?  

Any insight is appreciated!

[Chad Nagel]

Start with the owner, Usda won't give you any info as it's a confidentiality issue.  Do you want a buyer getting your info from a bank if your behind in payments? 

[Geoff Sdano]

Thanks for the reply Chad. That was my hunch. 

Totally makes sense with the confidentiality issue. My mistake in the  post above. I haven't ever dealt with the USDA when it comes to mortgages and wasn't sure what types of options they are willing to accept to reconcile loans (with things like short sales, etc..) and didn't know if it would be worth contacting them for information on their process aside from what's listed online. Not for specifics on this property. 

[Chad Nagel]

I have bought a few usda foreclosures. It is handled the same way as a typical bank reo. If USDA is already listed as owner then always contact.