Government Foreclosure Listings
National Overnight
TODAY
+/-
Last Week
4.51%
5.06%
3.24%
Government foreclosure listings are an essential tool for anyone interested in buying or investing in government foreclosed homes.
Government foreclosures differ slightly from bank foreclosures. While the government does not sell or loan money for homes, several government agencies do insure home loans. When the homeowner defaults on their loan, the lender notifies the agency that insured the loan. The insuring agency pays the lender and takes over ownership. The department in charge of disposing property for the agency then takes over with assessing, insuring and selling the property.
Not all government foreclosures are sold the same way. Selling practices can even differ within the same agency. Typically, properties like single-family homes are sold through brokers, while properties with five or more living units are sold directly by the agency. Because of the differences in selling procedures, government foreclosure listings greatly simplify the process of finding government foreclosure property.
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Government foreclosure home listings available through the agency will show basic property details. The listings will show the case number, address and number of bedrooms and bathrooms. Listings typically tell the price, as well as the value of the home without any repairs, The listings will also state whether there is an escrow account for the home and, if so, the amount of money in the account.
Government foreclosures listings available through a broker or listing service often give more detail than the agency listing. These listings typically tell whether the home is located in an area that requires special insurance, like a flood zone, as well as whether there are potential issues with pests and termites. Non-agency listings also mention any damage that requires major repairs, like plumbing or structure damage. The more detailed information can help a buyer make a more informed decision as to whether to pursue the property.
In government foreclosure listings for older homes, there will be a note about checking for lead-based paint. Some agencies, like HUD, require buyers to sign a "Lead-Based Paint Addendum". The addendum releases the agency from liability for any illness caused by lead-based paint in the home.
Buyers should always read carefully the details of listings and contracts prior to purchasing real estate, but this is even more important with government foreclosures. Government foreclosures require buyers to sign and return documents in a bid package before bidding on the property. With some agencies, these documents specify that the buyer must be an owner occupant, meaning they must live in the home, typically for at least one year.
Government foreclosure listings, especially those available from a listing service, can make it easy for buyers to find property available from government agencies. Those properties can help a buyer purchase a home, or larger property, at a significant discount.
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