Government liquidating foreclosed homes
However, if you’re not paying cash for a foreclosed property, there are three types of loans that will work.We summarize them in the table below and will discuss in more detail later.The pending sale is recorded with the county and often reported in the legal notices section of the local newspaper.Real estate auctions are typically held either on the courthouse steps, at the subject property, or at an auction house. If the foreclosed home doesn’t sell at auction, the lender takes possession of the property, at which time it becomes real estate owned (REO).In addition to helping you in the buying process, real estate agents can also be excellent sources for finding foreclosed homes.Their connections to other sellers, agents, and lenders mean they will typically have the best sense of the foreclosure market.Home Steps by Freddie Mac is a loan program available specifically for the purchase of foreclosed properties held by the Federal Home Loan Mortgage Corporation (FHLMC).Two major advantages of the program are that appraisals and mortgage insurance both aren’t required for these loans, which can save a buyer thousands of dollars.
They’re available through nearly all major banks, mortgage providers, and mortgage brokers.
Government agencies can include foreclosures for non-payment, but may also be related to property seizures for violations.
Primary sources of government foreclosures include Fannie Mae, Freddie Mac, and HUD’s interagency listings (including FHA, VA, IRS, etc.).
A foreclosure has several steps before a property is actually sold.
First, the lender must file a public notice with the county recorder’s office, most often referred to as a notice of default (NOD).The lender will attempt to sell REO properties by listing them for sale with a local real estate agent or at a liquidation auction.