FHA foreclosures

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As everyone knows the USA passed through the Great Depression in 1929-1933. This period can be characterized with high inflation, poverty, constantly rising unemployment, the foreclosure markets also suffered from that crisis.

During the crisis the US government took a decision to set up the Federal Housing Administration (FHA), officially it was established in 1934. The main aspirations of US authorities in this situation are clear. First and foremost it was required to solve the situation with bad debts; secondly FHA had to maintain the growth of housing markets. And eventually the foreclosure market of the USA lacked some novelty.

The project for WW II veterans was financed namely by FHA. It is important to underline that Federal Housing Administration preserved the normal prices on real estate markets in 1970-1980, the years of recession in American economic. Now FHA is one of the world biggest mortgage insurers. Even so FHA was established as governmental organization it invests in its projects only with FHA own profit.

Due to this fact FHA became a unique government organization just before Housing Urban Development (HUD) requested for assistance of taxpayers. It happened because of Agency budget deficit, so that help from Congress was the just one possible solution. In order to work with high risk loans and to increase its effectiveness in reaching main goals of agency, FHA developed a number of special programs, for example the FHA Secure program. The aim of this program is to enable the clients to invest means into FHA insured mortgages taking into account quite low mortgage rates. This project results from the failure of FHA average client to obtain the private insurance policy and to pay back the average mortgage rate.

Besides agency operates only with such lenders who were qualified by US Government. Couple of years ago the Recovery and Reinvestment Act was signed, according to it 2008 Fannie Mae, Freddie Mac and FHA debts limits were reinstated.
Feel free to search for FHA foreclosure properties, HUD homes and other types of foreclosed homes.

How to Find Foreclosure Properties

It is not complicated task to find a foreclosure 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 . So asking for not listed foreclosure property will give you advantage. The task becomes even easier if you have hired an agent, so he will find for you all the information needed.

Nowadays listings of foreclosed homes 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.