Hard Facts on Government Foreclosures Homes

by Peter Vernon on Foreclosures

The main source of government foreclosures homes is the Department of Housing and Urban Development. The agency only works with real estate brokers and agents which they have certified. Any broker or agent worth their salt are certified by the HUD and it is a matter of finding one you can work with. These agents know the inns and outs of buying from the government and can break it down to you in understandable terms. These agents claim their commissions from the HUD so you need not concern yourself with this aspect.

Finding These Foreclosures

Access to the Internet cuts your search in half as most HUD-accredited real estate companies, brokers or agents have an online presence. You simply have to log on to their sites to view their database of government foreclosures homes to find the one you like.

The Buying Process

All fresh foreclosures are sold through a silent auction and this auction is open only to buyers who intend to live on the home, also known as owner-occupiers. It is the goal of the HUD to provide housing for American individuals and families and they give priority to direct buyers over real estate companies. There is typically an offer period of two weeks whereby buyers can submit their bid. The highest bid wins the property.

If an auction does not yield a winning bidder, the property will go through another round of auction but the scope of participants will be wider to include real estate companies or investors.

There are several government housing assistance and grants which buyers can avail to augment their budget for purchasing government foreclosures homes. One should look into these incentives and grants before even making a bid. Also, a buyer must first conduct an inspection of the home and assess the cost of repairs before entering a bid at an auction.