The Best in Government Foreclosures
Government agencies in the United States aren't supposed to be involved in real estate, but they are. Although some people might see this as evidence that the government is encroaching on our daily lives, the truth is that these agencies are providing an important service by selling homes and, not unimportantly, creating impressive investment opportunities for those who know where to look.
Search Foreclosures by State
 |
Buying Homes From Government Sources
Federal agencies do not generally buy homes, but certain agencies such as the Federal Housing Administration do insure mortgages to help people become homebuyers. When individuals have a federally insured mortgage but are unable to make their monthly mortgage payments, the insuring federal agency forecloses on the home, repays the lending institution for its losses, and is the new legal owner of the property. The agencies are eager to sell these government foreclosures as quickly as possible, even if that means selling them below their market value. Consequently, buying foreclosures is a great way to use low-cost properties to quickly and easily make a profit through resale.
Federal Foreclosures are Everywhere
Federal foreclosures comprise a large percentage of the foreclosures available in the market. If you're not considering these homes when you look for repossessed properties, you are likely missing out on the investment opportunity of a lifetime. Of course, this doesn't mean that you can jump in with your eyes closed. As with other foreclosed homes, these homes are sold "as is", so it's important to thoroughly inspect them before placing a bid.
Be Prepared
Although federal foreclosures are inexpensive, don't be fooled into thinking that they're free or close to it. Many people mistakenly believe that the properties can be purchased for next to nothing. The truth is that real estate is valuable and unlikely to sell for a few hundred dollars. Plus, government agencies are legally obligated to get the best price possible for repossessed properties. So don't make ridiculously low bids. However, you probably will get a good deal when buying from the government, because the manner in which federal agencies assess property values tend to undervalue them.
Getting the Listings You Need
Many people assume that foreclosures sold by federal agencies are easy to find: simply glance in the newspaper, pick the first low-cost property and place a bid. In fact, the process is more complicated. You will want to research the property carefully to ensure that it really is a bargain (and in good shape) and you will want to find a good realtor or broker who has experience in government foreclosures to walk you through the bidding process.
You'll also need an accurate and reliable list of available foreclosed properties. That's where ForeclosureDeals.com can help. We have years of experience providing frequently updated lists of hundreds of thousands of foreclosed properties that are for sale nationwide. Try our services today by signing up for our seven-day trial membership. You won't be disappointed.
