Government-repossessed homes

Government repossessed homes can offer you the opportunity to purchase a home slightly below market value. Some conventional home loans are backed, or insured, by a government association, called the F-H-A, which stands for Federal Housing Association. When a mortgage company repossesses a house, it files a claim with the F-H-A to recoup losses. Then, the government tries to regain the money paid to the mortgage company by selling the home. A department called Housing and Urban Development, or 'HUD' (hud), then takes over. HUD might repair and renovate the home before offering it for auction, or it might elect to sell it 'as is.' Usually, HUD compromises, and makes major repairs, then gives the purchaser an 'allowance' to make cosmetic improvements, such as replacing carpet or countertops in disrepair. It's important to note, you don't have to purchase lists to find these homes. Independent companies do sell lists of government repossessed homes, but you can obtain this list free of charge through a real estate agent. Remember, any licensed real estate agent is qualified to assist you in the purchase of a HUD home, and can advise you on the procedures involved. For more information on government repossessed homes, contact a real estate agent.