FHA backed mortgages

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Everybody knows that the US experienced the Great Depression in 1929-1933. This period entered the history under the sign of decreasing income, deflation, unemployment, the foreclosure markets also suffered from that crisis.

Within these years American authorities decided to found the Federal Housing Administration (FHA), officially it was opened in 1934. The main targets of US authorities in this case are easy to understand. Firstly it was necessary task to solve the situation with mortgages; in the second place FHA was obliged to support the progress of mortgage markets. And after all the foreclosure market of the USA was in need of innovations.

The housing program for World War the Second veterans was sponsored precisely by FHA. It is important to underline that Federal Housing Administration kept the average prices on real estate markets during 1970-1980, the years of recession in American economic. In modern world FHA exists as one of the world most influential mortgage insurers. Even so FHA is functioning in form of governmental agency it invests in its projects only with FHA own money.

Due to this fact FHA was accepted as a unique government organization just until Housing Urban Development (HUD) asked for aid of taxpayers. The reason for it lied in FHA budget deficit, so that financial support from government appeared to be the single possible way out of the situation. In order to operate with high risk clients and to boost up its effectiveness in reaching main goals of agency, FHA worked out several special programs, as an example we can name the FHA Secure program. The idea of this project is to give clients a chance to invest financial means into FHA insured mortgages taking into account low mortgage rates. The FHA Secure program results from the failure of FHA average client to purchase the private insurance policy and to cover the average mortgage rate.

Moreover Federal Housing Administration deals only with such borrowers who were qualified by American government. In 2009 the Recovery and Reinvestment Act was signed, according to it 2008 Fannie Mae, Freddie Mac and FHA loan limits had been reinstated.
Feel free to search for FHA foreclosure homes, HUD foreclosures and other types of foreclosed properties.

How to Find REO Homes

It is not complicated task to find a REO property. One has to keep in mind only one detail, that situation is different on different types of market. To give an example, strong and developing real estate market will offer much less foreclosure properties then falling markets, which are characterized with depression. There is one nice way to find a foreclosure. Imagine, that you are driving your car throughout the district you want to have house in. You will probably see numerous signs, but now we are looking for simple text, such as: Foreclosure, Bank-Owned, Bank Repo.

Don’t pass this sign by, take a cell phone a call on agent, ask him about the foreclosure list which haven’t appeared on the market yet. It is common situation that foreclosure agents wait for a long time until bank set the price level. So asking for not listed foreclosure home will bring you several steps forward. The task becomes even easier if you have hired an agent, so he will find for you all the information needed.

Nowadays foreclosure listings are available even through internet, you can find them on special websites. Below you will find a list of national lenders who offer REO property listings.