| As a serious foreclosure investor, it is only right that | | | | are also susceptible to foreclosure. The resulting |
| you find out as much as you can about these | | | | repossessed houses are called government tax |
| distressed properties that you are investing in. You | | | | foreclosures. |
| might be well-informed about pre foreclosures and | | | | Government Foreclosures Auctions |
| bank foreclosures but not as much with government | | | | In an effort to recover their losses, the government |
| foreclosures. To remedy this, you should read on. | | | | holds auctions with the intention to sell off the property |
| Government - Insured Mortgages | | | | to the highest bidder. Initially, first time home buyers are |
| There are actually two ways a home buyer can pay | | | | the only ones allowed to bid during the first round of |
| for a property. One is by paying in cash and the other | | | | foreclosure sale. The bids are made by real estate |
| by applying for a mortgage loan. In the second option, | | | | agents who are authorized by the HUD to do it on the |
| there are two sources: private lending institutions and | | | | buyer's behalf. If none of the bids were accepted for |
| government agencies such as the Department of | | | | the foreclosure house because it did not meet the |
| Housing and Urban Development, Department of | | | | minimum amount, another auction will be set and this |
| Veterans Affairs, Department of Agriculture and the | | | | time it will be open to the public. |
| Internal Revenue Service. | | | | Investing in these government foreclosures, in addition |
| When you take out a mortgage loan insured by any of | | | | to bank foreclosures and pre foreclosures, is certainly |
| the above agencies, the title of the property will be in | | | | a nice way to earn considerable profit. They are sold |
| the banks name. If the mortgage obligations are not | | | | at bargain prices as well and would require some |
| met, the bank forecloses and the mortgage balance | | | | repair. If there is time, a home inspection is |
| will be paid by the government. On the other hand, | | | | recommended to determine the extent of the |
| homeowners who did not pay the taxes on their home | | | | property's deterioration. |