Government Foreclosures for Real Estate Investors

Government foreclosures by the Department of Housing and Urban Development residential are available in every state throughout the United States. The process for buying HUD foreclosures is quite different to buying a home from an individual. The other type of government foreclosure to be aware of is VA foreclosures. VA refers to the Department of Veteran's Affairs. The Federal Housing Administration is a division of the Department of Housing and Urban Development. Federal mortgage insurance is administrated through this department. Once foreclosure occurs the mortgage company can file a claim with the FHA to pay off the remaining balance on the loan. This agency pays that loan off and the ownership of the property is transferred to HUD department.

Veteran's Affairs foreclosures are attractive because you don't have to be a veteran to obtain them with preferred loan rates and no money down. All government foreclosures are at market price, with allowances sometimes being made for the state of property. Repairs and improvements will also be included in the sales price. When you buy one of these homes, you are buying it as it is where it is. There is no government agency covering the cost of any work that is needed. HUD and the DVA leave you to do the inspection work and make sure you know what you are buying.

HUD websites are linked, not only with foreclosures, but also with each state. By searching the websites, you may access the relevant links in order to locate an approved real estate agent. Remember to find your home before proceeding in your website search. Employed as intermediaries, real estate agents do not deal directly with buyers. For example, the Veteran's Administration uses Ocwen Loan Servicing for services related to their properties.

The process is a little different to buy a government foreclosure. You generally don't make an offer, you make a bid. There is a period after the home comes on the market when bids are accepted. At the end of the bidding period all of the offers are opened and generally the highest bid will be accepted.

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