| It is not only private banks and lender who foreclose | | | | - Sheriff offices and many others |
| on homes. The Government has the same problems. | | | | Just looking at this list is enough to boggle the mind. So |
| The US Department of Housing and Urban | | | | you ask yourself, where do I find these? The answer |
| Development or HUD and the US Department of | | | | is really pretty easy. Many online listing services will tell |
| Veteran Affairs or VA are in the same boat as other | | | | you exactly where to find government foreclosure |
| lenders. In fact these two sources are the leading | | | | auctions and foreclosed properties. In fact listing |
| source of properties in government foreclosure | | | | services often focus entirely on Government |
| auctions. | | | | foreclosure auction sales. |
| A FHA insured mortgage loans that are defaulted | | | | Freddie Mac and Fannie Mae offer insurance to banks |
| upon means the HUD has a huge amount of | | | | and lenders so that people are able to make low |
| foreclosure properties in their inventory. and the same | | | | down payments and enjoy lower interest rates than |
| applies to VA guaranteed mortgage loans. Only VA | | | | the private sector. If people are unable to meet their |
| guaranteed mortgage loan properties come into the | | | | mortgage demands, the bank or lender forecloses on |
| inventor of the VA. Both these sources of properties | | | | the property. These lenders then revert to Freddie |
| have to be sold at government foreclosure auctions. | | | | Mac and Fannie Mae to collect payment from the |
| It is possible for investors to purchase these properties | | | | insurance that was extended on issue of the |
| at auction, live in them, fix them and on-sell at a profit, | | | | mortgage. Thereafter these properties become |
| or rent them out as investment properties. These | | | | owned by the government. The government has to |
| properties are available at auction or post-auction | | | | sell these properties to recover losses and this is |
| through real estate agents who have been specifically | | | | conducted at government foreclosure auctions or by |
| chosen to specialize in foreclosed homes owned by | | | | other means. |
| the government. | | | | The government agency that owns the property |
| There are a whole host of government departments | | | | authorizes an organization to place these properties on |
| who offer investors the opportunity to either attend | | | | sale by auction and you become the owner if you |
| government foreclosure auctions or purchase already | | | | offer is accepted. The most popular sales are HUD |
| foreclosed homes, these include: | | | | sales. HUD pays around 6% to the agents they use to |
| - FDIC (Federal Deposit Insurance Corporation) | | | | sell their properties and this amount is added to your |
| - IRS (Internal Revenue Service) | | | | bid price. |
| - GSA (U.S. General Services Administration) | | | | Information regarding government foreclosure auctions |
| - SBA (Small Business Administration) | | | | is public information. There is nothing reserved about it |
| - Fannie Mae | | | | as there sometimes tends to be with bank |
| - Freddie Mac | | | | foreclosures. The information is publicly available from |
| - U.S. Army Engineers Corps | | | | all these government agencies and you are able to |
| - County taxation departments | | | | request it under the Freedom of Information Act. |
| - US Customs | | | | |