What is a Government Foreclosure?
A Government Foreclosure is when a Government agency provides funding in the form of a HUD, FHA or VA loan. If the buyer is unable to continue making the monthly payments, the agency forecloses on the property. Meaning that it repossesses the property that was used as collateral for the loan. HUH, FHA AND VA loans are usually subsidized loans with low interest rates for the buyer. When these properties are repossessed, the agency looks for a new buyer to take over the property. Therefore these properties are a very good bargain for someone looking for an affordable home.
How can you find these bargain homes?
Some foreclosed properties may be offered at tax auctions and others may be listed with a Foreclosure Listing Service. The information available will be things such as the sale price, how many bedrooms and bathrooms, how many square feet, and any other interesting features of the properties as well as school and neighborhood information. The service usually requires a small monthly service fee, but you have access to an unlimited amount of available properties to look at. A long with the sellers contact information such as daytime phone number and email address.
The purpose of a Foreclosure Listing Service:
A Foreclosure Listing Service works to find and list, Government foreclosed homes for prospective buyers. The service updates its foreclosure listings daily and may have thousands of homes listed. They will usually require a small monthly membership fee to make these lists available, but may have a free 7 day trail offer where you can “try before you buy”.
Real estate is a very profitable business for some, so many people looking to break in to real estate will start by buying Government foreclosed homes. The sale prices are below market value and a good deal for bargain hunters.