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Government Foreclosure: A Money Saving Source For Cheap Properties
By Myles Johnstone

HUD or the U.S. Department of Housing and Urban Development and VA or U.S. Department of Veteran Affairs is your best bet for locating government foreclosure homes listings. Homes that are foreclosed on a FHA-insured mortgage loans are acquired by HUD while VA gets homes that are foreclosed on VA guaranteed home mortgage loans.

HUD And VA Specialize In Government Foreclosure Homes

It is possible to own a government owned home to live in or lease out or sell for quick profit, and government foreclosures such as those of HUD and VA are offered to the public via professional real estate agents that specialize in government foreclosure homes. Besides HUD and VA, there are many other government foreclosure sales sources such as FDIC or Federal Deposit Insurance Corporation, IRS or Internal Revenue Service, GSA or U.S. General Services Administration and Fannie Mae, Freddie Mac, and many other government agencies.

There could be many reasons for properties to be placed on government foreclosure listings, and these may include overdue payments, mortgage, Federal, state and local taxes, assessments, mechanics liens, homeowner association fees as well as utility bills.

The government foreclosure market is dominated by HUD foreclosures as well as VA foreclosures. Fannie Mae as well as Freddie Mac gives insurance to banks and lenders to enable people interested in buying real estate to pay lower interest rates as well as make lower down payments. In the event of a borrowing homeowner defaulting, the lending organizations go to Fannie Mae and Freddie Mac for the payment, and in such an instance, the property is placed in the hands of the government.

If a homeowner fails to pay taxes or violates the law, then the IRS, U.S. Customs as well as other federal and local government agencies are able to seize the property. The government agency gets the title to the property, and interested buyers may participate in auctions conducted by individual government agencies to buy up the government foreclosure property.

The highly popular HUD sales are made through special real estate agents , and the buyer should work with the help of a licensed real estate agent in order to participate in the bidding. The agent gets six percent commission on the sales of government foreclosure properties, paid by HUD, and this commission is added to the price of the property.

To get information regarding government foreclosures, one can go to the county real estate office and peruse title records of the homes that interests one, and is also possible to obtain publicly available information through various government agencies. Nevertheless, it is real estate agents that will be able to provide you with quicker information, and it may also be wiser to let the real estate agent do the job on your behalf.

About the Author
Myles Johnstone writes exclusively for finance related sites about such subjects as commercial mortgages and credit repair

Source: Free Articles Directory

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