FHA foreclosure homes

Share this page in Twitter     
Bookmark on Delicious Bookmark this on Delicious

As it is known the United States of America passed through the Great Depression in 1929-1933. These four years entered the history under the sign of high inflation, poverty, constantly rising unemployment, the foreclosure markets also suffered from that crisis.

Within these years American authorities decided to set up the Federal Housing Administration (FHA), officially it was founded in 1934. The main aspirations of US authorities in these circumstances are understandable. First and foremost it was needed to solve the situation with bad debts; secondly FHA had to support the evolution of real estate markets. And thirdly the foreclosure market of the America was in need of fresh ideas.

The housing program for WW II veterans was funded precisely by FHA. It has to be noted that Federal Housing Administration saved the stable prices on real estate markets during 1970-1980, the period of economic recession. Today FHA exists as one of the world largest mortgage insurers. Although FHA is functioning in form of governmental administration it finances its activities only with FHA own financial means.

Because of such situation FHA turned into a unique government agency just before Housing Urban Development (HUD) requested for help of taxpayers. The reason for it lied in Federal Housing Administration budget deficit, so that financial aid from US government appeared to be the only one possible way out of the situation. In order to operate with high risk mortgages and to boost up its effectiveness in reaching main goals of agency, FHA developed some special projects, as an example we can name the FHA Secure program. The aim of this program is to to permit the clients to input financial means into FHA insured mortgages because of quite low mortgage rates. The FHA Secure program results from the failure of FHA average client to obtain the private insurance policy and to cover the average mortgage rate.

Additionally Federal Housing Administration deals only with such borrowers who were qualified by American government. Couple of years ago 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 properties, HUD foreclosures and other types of foreclosed properties.

How to Find REO Homes

It is not complicated task to find a REO home. 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 property. 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 some time until bank . So asking for not listed foreclosure house 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 REO properties 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.