FHA backed mortgages

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As everyone knows the USA went under the Great Depression in 1929-1933. This time entered the history under the sign of high inflation, poverty, constantly rising unemployment, the foreclosure markets also suffered from that crisis.

Within these years the US government got an idea to create the Federal Housing Administration (FHA), officially it was opened in 1934. The main objectives of US government in this case are clear. First of all it was necessary task to fix the situation with mortgages; in the second place Federal Housing Administration was obliged to contribute into the growth of mortgage markets. And thirdly the foreclosure market of the US was in need of new ideas.

The program for World War II veterans was sponsored namely by Federal Housing Administration. It is important to underline that Federal Housing Administration kept the normal prices for real estate during 1970-1980, the time of recession in American economic. Today FHA exists as one of the world most influential mortgage insurers. Although FHA was created as governmental agency it funds its programs only with FHA own financial means.

Because of such situation FHA was accepted as a unique government organization just before Housing Urban Development (HUD) asked for support of taxpayers. It happened because of Agency budget deficit, so that financial support from government became the only one possible solution. In order to operate with high risk loans and to increase its efficiency in reaching main goals of agency, FHA created7set up a wide range of special projects, for example the FHA Secure program. The objective of the program is to enable the clients to deposit means into FHA insured mortgages because of quite low mortgage rates. The FHA Secure program results from the inability of FHA average client to get the private insurance policy and to cover the average mortgage rate.

Further Federal Housing Administration operates only with such borrowers who were qualified by US Government. In 2009 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 foreclosures, HUD homes and other types of foreclosed properties.

How to Find Bank Owned Homes

It is not complicated task to find a foreclosure property. 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 foreclosures then falling markets, which are characterized with depression. There is one nice way to find a REO home. 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 still waiting to be listed in the market. It is common situation that foreclosure agents wait for a long time until bank set the price level. So asking for not listed foreclosure home will will save you a lot of time. The task becomes even easier if you have hired an agent, so he will find for you all the information needed.

Nowadays foreclosure listings 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.