Where do Government Foreclosures come from?
HUD (U.S. Department of Housing and Urban Development) is a federal agency that implements housing policy and was created to increase homeowners hip across America. It accomplishes this by insuring loans for people who can afford only a low down payment or who don’t meet standard credit criteria. HUD loans are higher-risk loans and therefore have a higher default rate. When HUD mortgages are foreclosed, the properties are sold to the public. Since the foreclosure is insured by HUD, the government must pay the lender the amount due on the loan. When the loan is paid off, HUD takes possession and can dispose of it in any reasonable manner. In order to bid on a HUD home, you must submit your bid through a designated HUD broker. Normally, HUD homes are sold during an Offer Period. When this ends, all offers are opened and the highest reasonable bid is accepted. If your bid is accepted by HUD, your real estate agent will be notified, usually within 48 hours. VA (Veterans Administration Loan
