FHA foreclosures

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As it is known the USA went under the Great Depression in 1929-1933. These four years can be characterized with decreasing income, deflation, unemployment, the foreclosure markets also experienced that crisis.

During the crisis government of the USA got an idea to create the Federal Housing Administration (FHA), officially it was set up in 1934. The main targets of government of USA in these circumstances are obvious. Firstly it was needed to solve the situation with bad home loans; secondly Federal Housing Administration was obliged to support the progress of mortgage markets. And after all the foreclosure market of the America was in need of new ideas.

The housing program for WW II veterans was funded precisely by FHA. It is important to underline that Federal Housing Administration saved the stable prices for real estate during 1970-1980, the years of another economical crisis in US. Currently FHA acts as one of the world biggest mortgage insurers. Despite the fact that FHA is functioning in form of governmental organization it invests in its projects only with FHA own financial means.

Because of such situation FHA was supposed to be a unique government agency just until Housing Urban Development (HUD) applied for support of taxpayers. It happened because of FHA budget deficit, so that financial aid from US government appeared to be the just one possible solution. In order to deal with high risk clients and to increase its effectiveness in reaching main goals of agency, FHA worked out several special projects, for instance the FHA Secure program. The idea of this project is to enable the clients to invest financial means into FHA insured mortgages because of low mortgage rates. The described Secure program results from the failure of FHA average client to buy the private insurance policy and to cover the average mortgage rate.

Additionally FHA works 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 debts limits had been reinstated.
Feel free to search for FHA foreclosures, HUD foreclosures and other types of foreclosed homes.

How to Find Foreclosure 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 foreclosure homes then falling markets, which are characterized with depression. There is one nice way to find a foreclosure. 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 some time until bank adjust property price. So asking for not listed foreclosure property 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 free 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.