Are Bank Foreclosures Better Than Other Types of Foreclosed Homes?
While foreclosed homes tend to be lumped into one type of property, there are in fact many types of distressed property. Each has their own advantages and potential pitfalls for the buyer: 1) HUD homes. HUD (The Department of Housing and Urban Development) homes are sold by the federal government. The last owner of an HUD home had a government-insured loan. When the owner defaulted on this loan, the lender recouped the money lost on the loan via the government. The government is selling the home. HUD homes are attractive because the HUD offers many special programs for first-time and low-income homebuyers. If you qualify for one of the HUD’s programs, you could enjoy substantial savings. HUD homes are also appealing because they can be purchased through an HUD-approved real estate agent, who can guide the buyer through the process. 2) VA homes. VA homes are being sold by the Department of Veteran Affairs (VA). The last owner of a VA home was a member of the army, navy, or another branc
