Is Federal Foreclosure Property Worth Buying?
Not only are foreclosure rates rising in the private real estate sector, they are skyrocketing in the government secured sector as well. A federal foreclosure is a great way to buy a property at a price well below market value.
There are a number of federal foreclosure properties that the government has for sale. You can purchase anything from single family homes to condo’s, commercial buildings, farms and ranches through federal foreclosure auctions.
A lot of these properties have been seized by the government because of unpaid personal or property tax and are sold so the government can get back some of the taxes owed to it. There are also a number of federal foreclosure properties available for public sale due to homeowners getting behind on their mortgage payments and defaulting on their VA or FHA secured housing loans.
VA-guaranteed loans and FHA -secured loans are loans taken out with lenders, not the government agencies themselves. What the VA and FHA do is guarantee these loans. So if the borrower gets into financial difficulty and defaults on the home loan, these government agencies pay back the lender any money owed and then try to get back this money by putting the homes up for auction sale.
If you plan on buying a federal foreclosure property, you need to be aware that these homes are sold as is, so it would be wise to get a property inspection done if possible. If any repairs need to be carried out, the cost of these can be factored into how much you wish to pay for the property compared to the price being asked (which is usually the money owed on the home).
If you wish to locate a federal foreclosure, you can look on some of the online foreclosure listing sites like foreclosure.com or go to the government sites themselves. They don’t sell the foreclosure properties directly but outsource the sale to property management companies who then list them on various listing sites.
A federal foreclosure offers yet another opportunity for the homebuyer or investor to buy foreclosure property at bargain prices. some are sold very cheaply as the government just wants to get these properties off their hands and recoup what they can of the money owed. It’s worth taking a look at what’s available here
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