Homes
become Government Owned foreclosures (GOVs) in one of two ways: the
homeowner defaulted on a government backed home loan or they failed
to pay income or property taxes.
While exceptions exist, there are three organizations that make up the bulk of GOVs: HUD, VA and USDA.
HUD stands for The U.S. Department of Housing and Urban Development. Homes with defaulted loans from the Federal Housing Administration (FHA) commonly become HUD foreclosures.
HUD acquires foreclosed homes and puts them up for silent auction. The properties are awarded to the highest bidders.
While exceptions exist, there are three organizations that make up the bulk of GOVs: HUD, VA and USDA.
HUD stands for The U.S. Department of Housing and Urban Development. Homes with defaulted loans from the Federal Housing Administration (FHA) commonly become HUD foreclosures.
HUD acquires foreclosed homes and puts them up for silent auction. The properties are awarded to the highest bidders.
VA foreclosures are from The U.S. Department of Veteran Affairs. These are homes with VA backed loans, such as the VA Vendee Financing Program, that have been defaulted.
You do not have to be a veteran or associated with a government agency to purchase a VA foreclosure. Non-veterans can even be eligible for VA loans when buying VA foreclosures.
The United States Department of Agriculture (USDA) is most commonly known for regulating farms and food safety. However, they also provide Rural Development home loans.
As with other GOVs, the USDA acquires homes bought with Rural Development loans that go into default. USDA homes are ideal if you want an inexpensive farmhouse.
Like banks and lenders, government agencies are not in the business of selling real estate. They want to sell off these properties quickly, so they’re a great place to look to find a great deal.
You can read more about government foreclosures on our site: http://www.foreclosuredeals.com/government-foreclosures/
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There are currently 2 Responses to this blog entry.
Brad - Home Loan Artist
Great info. You are right, these government agencies seem to be better at selling homes in their inventory than Fannie Mae or Freddie Mac. I have seen people get great deals on these homes. FHA even has a $100 down payment program to help sell off their inventory.
ForeclosureDeals
This is just something that need to be done. The government has let it run wild and the number of foreclosed properties have been going up. This is something the government needs control of.