FHA Foreclosure Property Information
FHA foreclosure properties allow people to have the chance to buy a home for themselves and their family without paying a high price for the mortgage.
When you're interested in FHA foreclosure properties, you might want to know just what properties are available for purchase under this umbrella term. After all, there are numerous properties, but you want to know what your options are in order to choose the home and the foreclosure that's best for your needs. The first step to buy foreclosures is to find out what's out there right now.
It can help to understand the actual foreclosure process and whether certain properties emerge for sale during this process. When a homeowner is first falling behind on their payments, they are alerted by the bank of their payment problems and given a chance to catch up on the money owed. If the payments still do not come into the bank, then the house is said to be in preforeclosure. At this point, the home is not for sale until the home actually goes into foreclosure, but there might be times when the home is on its way to foreclosure, so it's listed before the actual foreclosure is determined.
You can learn about other foreclosure terms on our glossary web page.
Once the foreclosure does take place, then the homeowner does not own the house anymore. Instead, their house is then owned by the bank who gave them their loan. In order to make up the money loss from the foreclosure, the bank might hold an auction on the foreclosed house. A date will be determined for the auction, and the price will be based on what the homeowner did not pay off.
The bank owns the home when it is in foreclosure and it has not been picked up in an auction. The bank might then work through a realtor to try to get the home sold in the traditional way or they might work with the FHA to see is the FHA foreclosure can then be sold. These homes might be sold via FHA foreclosure listings, many of which are free. Look for a free FHA foreclosure listing in your area by going to the HUD website or by doing a basic Internet search.