Government foreclosures, which include gov tax foreclosures and bankruptcy houses, are among the most well-maintained REO homes. Buying homes through HUD, FHA, VA, USDA, the IRS or even bankruptcy courts can help homebuyers save thousands of dollars on a house.
3. Fannie Mae and Freddie Mac Though neither the Federal National Mortgage Association (Fannie Mae) nor the Federal Home Loan Mortgage Corporation ( Freddie Mac ) sell foreclosed homes, these Government-Sponsored Enterprises (GSEs) play an important role in the real estate market. Both Fannie and Freddie exist to make sure there's an indefinite amount of money to fund home loans by buying existing loans and selling them to other lenders.
4. FHA The Federal Housing Administration (FHA) exists to help more Americans achieve homeownership. As such, many lower income Americans can qualify for FHA-backed home loans. However, as with any other type of loan, the homeowner must pay this back over time. If the homeowner falls behind on their loan payments, the home goes into foreclosure and is usually taken over by HUD as an FHA Foreclosure .
5. HUD The U.S. Department of Housing and Urban Development usually sells homes purchased with defaulted FHA-backed loans as REOs. These HUD homes may be ideal for individuals who want to purchase a home directly from the lender but find banks intimidating.
6.
7. VA PLEASE NOTE: VA loans are not just for veterans. If you are purchasing a VA foreclosure , you can qualify for a VA-backed loan, such as those offered through the VA Vendee Financing Program, even if you are not a veteran.
8. USDA The main purpose of the U.S. Department of Agriculture is to regulate farming and food safety. However, the USDA also provides Rural Development home loans, and homes backed with these loans are usually repossessed by the USDA when they go into default. USDA foreclosures may be ideal for you if you're seeking farmland or large family homes in a rural area.
9.
10.
11. Tax Foreclosures PLEASE NOTE: Your state may practice tax lien foreclosures over tax deed foreclosures or vice versa, and auctions can occur anywhere from once per quarter to once per month. Consult your local IRS office for more details.
12. Tax Lien Foreclosure In a Tax Lien Foreclosure , the buyer initially purchases a certificate equal to the amount the homeowner owes on their back taxes. The homeowner is given a specified amount of time to pay back their liens. If the homeowner fails to do so, the tax lien certificate holder can request a tax deed from the county. This gives the buyer ownership of the property, and all remaining debts and liens from the previous homeowner are cleared.
13. Tax Deed Foreclosure In a Tax Deed Foreclosure , buyers are bidding on the deed to the house starting at the amount owed on the homeowner's back taxes rather than buying a tax lien certificate. Like in a tax lien foreclosure, the homebuyer will receive the home cleared of all debts and liens.
14. Bankruptcy Foreclosures When a homeowner files for bankruptcy, their property may be among their liquidated assets. If this is the case, homebuyers can purchase these homes as bankruptcy foreclosures .
15. Bankruptcy Foreclosures PLEASE NOTE: Bankruptcy foreclosures are different from most foreclosure sales in that the sale of the home will be strictly governed by a bankruptcy court and court-appointed trustees. Be prepared to have to go through several court proceedings if necessary.
16.
17.
18.
19. For more information: http://twitter.com / ForeclosureDB http://feeds.feedburner.com/ForeclosureDataBank/foreclosure-news/ http://www.linkedin.com/company/Foreclosure-DataBank http://www.facebook.com/ForeclosureDatabankCom http://www.ForeclosureDataBank.com