Government home foreclosures may be overlooked by homebuyers and small investors as they need the assistance the housing counseling agency in order to acquire anything in the property sales done by the US government.
However, buying government home foreclosures presents fantastic opportunities to save a great deal of money as these properties are sold below their market price. In this depressed housing market, good quality and even upscale homes can be within homebuyers 'and real estate investors' reach.
Homes for government foreclosure
Homes get repossessed by the government when the original home owner could not make mortgage payments. Government agencies that have provided home owners the loan have to get their money back, thus, they foreclose on a property.
Some government agencies, on the other hand, may not have directly lent the money, but instead they have guaranteed the loan. In case the homeowner defaults on his obligation, then the government agency will start on the foreclosure proceedings. First, the agency will pay for the obligation that had gone sour with the bank or some other lending institution. Upon the settlement of the loan, the government takes over the property to sell it.
Another reason why a house is repossessed by the government is because the homeowner did not pay the property taxes.
Whatever the reason, the government must get these properties off its books as quickly and cleanly as possible, because it is not in the business of selling and making a profit from real estate in the first place. Due to these circumstances, these government home foreclosures offer attractive discounts that homebuyers, especially those that will make their first property purchase, must take advantage of.
Distressed properties put on sale by the government are also great investments for real estate sellers as they can make a profit even in these uncertain economic times. With enough information through the assistance of foreclosure listings, real estate investors save a lot of time, money and effort in scouring for cheap government home foreclosures.