But the case is different with California housing investors, Patrick F. McMillin and his son, Patrick L. McMillin. The father-and-son team of McMillin Ventures buys foreclosure homes, spends a large amount of money and time fixing them, and sells them to military veterans.

Patrick L. said that military veterans deserve to have a home because they dedicated their lives to serving the country. He added that he and his father are very proud to have found a way to help someone who served in the military.

When father and son established the McMillin Ventures in 2008, they did not plan to buy foreclosure, repair and sell them to military veterans. However, they pointed out that their housing projects are tailor-made for military veterans.

The housing projects of the McMillins are affordable and eligible for low-cost loans guaranteed by the Veterans Affairs (VA, which means that no down payment is needed). Also, buyers are spared the trouble of waiting for weeks for the lenders to decide if they will approve the loans.

So far, eight out of the 12 buyers of McMillins’ houses have been veterans. Both father and son relish the idea of selling to military veterans because their ancestors also served the country.

Meanwhile, the McMillins said that they find it very easy to work with VA-insured buyers, adding that VA loan transactions are often the smoothest to handle. However, the case is different with turning a house in a deplorable condition into someone else’s dream home.

Both father and son said that the buying and rehabilitation process often involves months of waiting for banks to approve the deal and another three months to finish the renovations. When the McMillins buy foreclosure houses, they expect them to be in the worst conditions, with missing fixtures and appliances, illegal room additions, cracked slabs, outmoded electrical lines and malfunctioning plumbing.

To clinch the sale, the McMillins make it a point to meet the prospective buyers before signing the sales contract, adding that it is their way to establish a personal relationship with the buyers.

Experts pointed out that the glut in the commercial real estate market has hindered construction of new towers in the Atlanta metropolitan area for the years to come. In Buckhead, over 3 million-square-foot of office space is empty.

The trend in the Atlanta office market indicates the difficulty of building managers and owners to find tenants in the current market that has more office space supply than demand.

The increase in bank and government tax foreclosures and unemployment has also left many office spaces unoccupied. In metropolitan Atlanta, the 24-million-square-foot vacant office space had a negative absorption rate of 59,000-square-foot from July to September this year. The third quarter negative absorption was the fourth in a row.

Industry experts said that if the market would start to improve now, with an estimated 500,000-square-foot office space being filled every three months, it would still take about 12 years for all the current empty spaces to be filled up.

Normally, quarterly absorption of office space was about 300,000 square feet to 700,000 square feet. Industry experts said that in 2007, they predicted that the office market would recover by 2010. But now, they are not sure if there would be a recovery anytime soon.

The massive job loss across the region has taken its toll on the commercial market. For the last three years, nearly 50,000 employees have become jobless as companies trim down their spending and downsized their operation in order to survive the long-running economic downturn.

The vacancy rate in the Atlanta office market rose by 18.1 percent in the third period from 15.7 percentage points for the same quarter a year ago. Downtown Atlanta vacancy rate was up by 13.6 percent in the third quarter while the suburban office market vacancies reached 17.4 percent from 15.3 percentage points.

Industry experts said that current trends, including increasing unemployment, bank and government tax foreclosures and continuing rent decline, are working against the immediate recovery of the office market in Atlanta.

Home mortgage provider, Fannie Mae said that the delinquency rates on single-family home loans it insured rose to 4.45 percent, representing a 0.28 percent point rise from the 1.57 percent rate last year.

On the other hand, the delinquency rate on multifamily home loans remained unchanged at 0.56 percent for the same month. However, it was higher compared with 0.16 percent a year earlier. Industry analysts said that delinquency rate does not reflect the actual government foreclosure homes but it could be a precursor of the trend in the housing market.

In September, the mortgage investment portfolio of Fannie Mae increased by 22.4 percent in annual rate to $792.7 billion. For year-to-date, the annual rate was 0.9 percent. Fannie Mae’s portfolio was around $761.4 billion in September last year.

The total mortgage investments of Fannie Mae rose by an annualized rate of 5.2 percent in September, hitting $3.243 trillion. For year-to-date, it rose by an annualized rate of 5.7 percent. According to Fannie Mae, it provided market liquidity totaling $67 billion for 6.9 percent annualized rate in September, hitting $2.821 trillion. The annualized year-to-date rate was 10.8 percent.

Meanwhile, a drop in the mortgage-backed securities issuance was recorded in September, from about $62.1 billion to nearly $59.2 billion. Liquidations also dropped to around $44.6 billion. Similarly, another home mortgage agency, Federal Home Loan Mortgage Corp. of Freddie Mac reported an increase in delinquencies on its guaranteed loans. The agency’s mortgage investment portfolio also rose by 7.3 percent annualized rate in September.

The growing delinquencies are putting strain on the finances of both Fannie Mae and Freddie Mac. On its part, Freddie Mac reported delinquency acceleration of 3.33 percent from 3.13 percentage point in August and September last year’s 1.22 percent.

The company’s multifamily delinquency rate rose slightly by 0.11 percent while the volume of its refinance loan purchase dropped by 21.4 billion from $35.6 billion.

Industry expert said that delinquency rates does not reflect the actual government foreclosure homes numbers because some distressed homeowners may find ways to save their properties from foreclosures.

The U.S. Department of Veterans Affairs this year signed a long-term agreement with BAC Home Loans to be its property management company.

In August, BAC Home Loans Servicing was also chosen by Ginnie Mae to service its home loans formerly serviced by mortgage firm Taylor, Bean and Whitaker. These loans were financed through VA, FHA, the Office of Public and Indian Housing and the DA Rural Development Program.

Bank of America was bailed out by the federal government last year with $25 billion in taxpayer money as the bank also rescued Merrill Lynch and Countrywide Financial, which later was renamed BAC Home Loans Servicing.

For prospective home buyers looking for VA foreclosures, they can visit the web site va.reotrans.com for listings and detailed information on foreclosed homes available. The site also gives information on the names of listing agents that buyers can contact. The listings provide different names of listing agents depending on the states and neighborhoods.

VA foreclosures homes are available to every prospective home buyer and not only to veterans. Non-veterans can also avail of financing offered under the VA home loan financing program.

For investors looking for lower priced foreclosure homes and lower-interest home financing, VA foreclosed homes provide great opportunities because they can be purchased with low down payments and the number of VA foreclosures that can be acquired is not limited.

Experienced investors can even use a licensed appraiser’s rental projections for loan underwriting computations.

For VA home buyers planning to occupy the properties they are going to buy, VA foreclosures can be purchased with no down payment, depending on the evaluation of financial capabilities by the lenders. Up to two percent of the closing costs can also be financed and included in the final loan amount and up to six percent of the sales price can be provided by sellers to be used for closing costs.

VA foreclosures can also be accessed through local real estate agents who are licensed and who have access to major Multiple Listing Services that include VA foreclosed properties. These agents are the ones who will make the purchase offers and who will accomplish the needed documents for buyers of VA foreclosures homes.

Under the program, you can buy a VA foreclosed home with no down if you pass the eligibility requirements and you are going to occupy the house. The loan amount will be increased by up to 2 percent to pay for closing costs and other expenses.

If you are buying for investment, you need to make a down payment of at least 5 percent. If you have experience in the rental sector, you can include anticipated rent in the computation for underwriting. There are no limits to the number of properties you can acquire for investment.

This vendee financing program will also allow the seller to finance up to 6 percent of the total sales price to cover closing costs, funding fee and other expenses. The loan terms available are 15 and 30 years at fixed rates and there are no penalties for pre-payment.

To find VA foreclosures, visit foreclosuredeals.com. This site has a user-friendly technology that will help you find VA foreclosed properties in the zip code you are interested in.

You can enter your preferences in terms of city, number of beds, baths and price range to facilitate your search. You can also refine your search results by home price range from lowest to highest.

Every page that displays a VA foreclosure on the site includes the photo of the house, the list price, address, type of house, neighborhood map and a short description of the house. The names of the listing agent and the agent’s firm, including the photo of the agent, are provided. You can communicate through phone or email.

The Department of Veterans Affairs sells all its foreclosure properties through its property management contractor, BAC Home Loans Servicing LP. But you can take a look at these properties through a local real property broker who has access to local Multiple Listing Systems. The foreclosuredeals.com site described above is another option.

You can buy VA foreclosures and you can take advantage of the vendee financing program if you have adequate income to be able to make the monthly loan payments and if you have an acceptable credit score.

The treasurer’s office of the Mohave County auctioned off its investment interests in these communal properties in Colorado City as part of a tax lien sale for February. As of August, the troubled properties owe the city more than $148,900 in unpaid taxes. Included in the delinquent properties are houses, school and commercial buildings, undeveloped land and a park where a zoo was once located.

The city of Colorado’s tax bill totaled $1.2 million in 2007. The properties at risk of tax lien foreclosures are included in the Fundamentalist Church of Jesus Christ of Latter Day Saints’ communal holdings, the United Effort Plan (UEP) Trust.

Aside from Colorado properties, UEP Trust has properties on Bountiful, British Columbia and Hilsdale, Utah. But since 2005, the Utah court has been in control of the Hilsdale trust due to mismanagement accusations against the church leaders.

The land in questioned are not subdivided. Generally, tax payments are calculated by church leaders for individuals. The money will be turned over to the bishop who will then pay the county tax dues. Usually, any tax payment shortfall was covered by wealthier businesses or residents.

Historically, non-members of the congregation who resided in trust houses were issued tax notices. They send their payments to post office boxes. And any shortfall in tax payment was covered by the church.

Utah and Arizona tax collectors said that taxes were always paid on time. However, the trust is now being managed by Bruce Wisan, an accountant appointed by a court in Salt Lake City. According to Wisan, both nonmembers and congregation members who reside in trust houses failed to pay their 2007 taxes. He explained that there was a confusion on property tax payments because the congregation refused to cooperate with him and acknowledge his authority.

A representative of the congregation accused Wisan of failing to seek exemptions for property taxes that were previously given to the church. As of August, the communal properties owe about $428,721 for property taxes in 2008. Another tax lien foreclosures sale is scheduled for February 2010.

Industry experts said that almost anyone is eligible to purchase a property owned by the U.S. Department of Housing and Urban Development (HUD) as long as they have the cash or have been approved to take out a loan to fund the purchase.

Experts explained that HUD homes have undergone the complete foreclosure process which started when the homeowner defaulted on a loan guaranteed by the HUD unit, Federal Housing Administration (FHA).

As soon as homeowners missed their mortgage payments, lenders would file a claim for the unpaid amount at the HUD. The HUD will then pay off the lender and takes control of the distressed properties.

Just like with lenders, HUD is not in the business of property ownership. So the agency will immediately sell the foreclosed properties on its portfolio to recover its investments. HUD announces the foreclosed properties for sale through Internet listings, approved real estate agents and weekly newspaper advertisements.

To help potential buyers make a successful HUD home purchase, industry experts advise them to set the amount they are willing to spend for a property. They suggest using a loan or affordability calculator. Or buyers can go to their local bookstores and purchase a book or any material that gives information about financing a property purchase. These reference materials would most likely contain information on mortgage payment costs with various interest rates.

Industry experts said that potential buyers should know what they want before going out to look for a foreclosure home to buy. They should take some time to learn pertinent information, such as the type of houses they want, accessibility, desired square footage and so on.

Experts agree that the process of buying HUD foreclosure is simpler compared with the conventional home buying method. The HUD usually based its initial listing on the assessed fair market value of the property. The fair market value is based on assessments conducted by real estate appraisers.

The HUD homes foreclosure will then be placed on the market. Potential buyers should be aware that the owner-occupants are given the highest priority during the sale process.

The increasing number of foreclosures means trouble for the Federal Housing Administration (FHA), an insurance fund unit of the U.S. Housing and Urban Development. Industry experts said that the FHA has been insisting that it does not need any bailout from the federal government. But they believed that the agency would likely need about $50 billion in capital infusion in 2010 to cover all the losses it incurred when borrowers, who took out loans guaranteed by the FHA, defaulted on their mortgages.

But what really scares industry experts is that the flood of FHA foreclosures would greatly affect whatever progress has been made towards the housing market recovery. It is expected that sales of repossessed houses will hit 1.9 million next year, an increase of 1.7 million from 2009. Before the collapse of the housing market in 2007, annual foreclosure sales were about half a million.

Industry experts said that one major reason for the anticipated increase in the number of foreclosure homes is the decision of lenders to hold off foreclosing on delinquent houses. Many lenders were struggling to identify the borrowers who will qualify for the federally-supported loan modification program. Experts are expecting that by the end of this year, lenders will come to realize that only a few borrowers are eligible to receive a loan modification.

Compounding the problem is the continuing increase in unemployment rate. It is predicted that unemployment will increase to more than 10 percent in 2010, pushing more homeowners to the brink of foreclosure. Also, the resetting of adjustable rate loans to higher rates is expected to result to more foreclosures. Industry economists believe that foreclosures will start to ebb by 2011, reducing to only 1.1 million if the economy will continue to improve.

Meanwhile, the worsening foreclosure problem is pulling down housing starts for single-family homes. From 2001 to 2007, housing starts rose consistently, hitting a record high of 1.7 million. Fast forward to 2009 and housing starts are expected to reach a bottom of half a million.

Industry experts said that the trends all conspired to push FHA foreclosures to the roofs and the agency may as well think about its position of not needing any help from the federal government.

The rules, which cover condominium developments that will qualify for FHA-supported mortgage loans with low interest rates, will take effect on November 2. Under the new lending rules of the FHA, a condominium development should be 50 percent sold and at least 10 percent of the condo units are owned by one individual.

Additionally, loan delinquencies are allowed only on 15 percent or less of the units in the condominium buildings. Industry experts said that the stringent rules could help many condominium owners avert government foreclosures as they will be given affordable mortgage loans.

They said that FHA-backed loans are important to many property sales where prospective buyers failed to qualify for traditional financing. They added that changes in the rules will adversely affect condominium sales.

A study of the impact of government loan program on new property sales showed that the FHA financing is popularly used by builders in Northern California. According to the report, government mortgage programs were important in 2009. It noted that 59 percent of home sales in 2009 were dependent on financing programs of FHA, Veterans Affairs and the U.S. Department of Agriculture.

In Northern California, FHA financing accounted for 68 percent of the total sales for this year. In Southern California, FHA loans accounted for 48 percent of the total sales. The new condominium lending rules of the FHA are expected to protect the agency from incurring more losses.

Meanwhile, the federal government has set November 30 as the deadline for first-time homebuyers to avail of the $8,000 tax credit. But industry experts are hopeful that the federal government would give in to the growing pressure to extend the tax credit beyond its November deadline.

If the tax credit will be extended, it would mean good news to builders and a possible quick recovery of the housing market.

Industry experts said that making FHA-insured home loans with low interest rates more accessible would mean a lot in helping homeowners avoid government foreclosures in the future.

Similarly, White Plains city is set to receive over $900,000 as part of the U.S. Housing and Urban Development’s (HUD) Community Development Block Grants (CDBG). The funding for federal homes affordable programs was announced by Congresswoman Nita Lowey who said that the housing crisis is getting worst in the metropolitan area of New York.

She said that the cost of living in New York is so steep and affordable housing is difficult to find. She added that she hopes that the federal funding will give a boost on efforts of community organizations to help people who are in dire need of housing assistance.

The Housing Counseling Program of the HUD provides grants to support and enable the delivery of various housing counseling services to distressed homeowners at risk of foreclosures, homebuyers, low-income and moderate-income renters and homeless.

The main goal of the program is to promote financial literacy, preserve homeownership, improve affordable housing access and expand homeownership opportunities.

Among the grant recipients in the counties of Rockland and Westchester and the amount they will receive are the Human Development Services of Westchester Inc. for $42,724, Rockland Housing and Action Coalition for $33,984, Community Housing Innovations for $23,496 and Westchester Residential Opportunities Inc. for $39,228.

Veronica Raphael, director of the Westchester Residential Opportunities Inc., said that the fund will help the organization serve the growing number of people in dire need of housing assistance following the Obama Administration’s launching of the Making Home Affordable Program.

On the other hand, White Plains will receive about $904,879 from HUD under the CDBG program. Industry experts said that the CDBG grants are useful in such a way that they provide support to various programs and activities. The funding will allow White Plains to invest on some projects without the need to raise costs for city taxpayers.

The CDBG funding is provided yearly to states, counties and cities nationwide to support development of urban communities through housing assistance and economic opportunities for low and moderate-income individuals and families.

The federal homes affordable program is geared towards foreclosure prevention and promotion of homeownership.