A wide selection of properties
are available from property owners in default, lenders and government
agencies. They include every conceivable residential type; from single-family
homes, condominiums, and town houses, to multifamily buildings and apartment
communities. They are located in almost every area and a variety of neighborhoods
throughout the country. However, they don't often have signs on them
telling investors what they are.
Property listings for most VA, HUD, Fannie Mae, & Freddie
Mac foreclosed houses are available through government lists and now often on
the Internet. The properties are available for sale to the general public and
an effort is made to market them to both homebuyers and investors, to veterans
and non-veterans. However, when the broker's for sale sign goes up they will
look like every other listing and you will only know that they may be special
with research or a relationship with the broker.
VA-Acquired Properties Available For Sale
The Veterans Administration sells single to four family properties that
are acquired as the result of foreclosures on VA guaranteed loans.
They are offered through the facilities of 46
regionalVA offices. Property listings for most offices
are available on the Internet or by direct mail. Regional offices
whose Internet sites are not yet functional still publish sales listings
in local newspapers.
The
properties are available made available to investors and the general
public through local real estate brokers, and are sold to either veterans
or nonveterans.
Real estate brokers assist prospective purchasers
in viewing and offering to purchase the properties. Participating brokers receive
instructional material regarding the sales program and are familiar with VA sales
procedures. The VA pays the sales commission.
The VA offers owner financing for most of its foreclosed
properties. Sometimes financing is offered at $0 down.
To find the on-line VA list for your area, CLICK
HERE then click the link to your state office.
As you have learned, however, those investors
who have a relationship with VA appraisers and brokers will have early knowledge
of the really good deals. By the time you see a published list with the VA price
there will likely be an offer already presented.
- HUD
-
When
someone with a HUD insured mortgage can't meet their payments, the lender
forecloses on the home; HUD pays the lender what is owed and HUD takes
ownership of the home. HUD then sells it at market value as quickly as
possible.
HUD homes are sold "as-is", without warranty.
That means that HUD will not pay to correct any problems. But even if a HUD home
needs fixing up - and not all of them do - it can be a real bargain. For example,
HUD's asking price on the home will reflect the fact that the buyer will have
to invest money to make improvements. HUD might offer special incentives such
as an allowance to upgrade the property, a moving expense allowance, or a bonus
for closing the sale early.
In most sales the buyer can request HUD to pay
all or a portion of the financing and closing costs. Your real estate broker
will have details.
HUD homes normally sell in an "offer period".
At the end of the offer period all offers are opened and basically, the highest
bid is accepted. If the home isn't sold in the initial offer period, you can
submit a bid. Bids can be submitted any day of the week, including weekends and
holidays. The will be opened the next business day. If your bid is acceptable
to HUD, your real estate broker will be notified (usually within 48 hours).
- Government Agencies with homes for sale:
-
(click on the agency name to go to their home page and on the "hms" link to go to their listing of properties for sale)
Dept of Veteran Affairs |
hms
Fannie Mae |
hms
Federal Deposit Ins Corp |
hms
Freddie Mac |
hms
GSA Property Disposal
U.S. Treasury |
hms
Small Business Administration |
hms
US Army Corps of Engineers |
hms
Customs |
hms
U.S. Marshalls Service |
hms
Dept of Agriculture (go to their search button and search "homes for sale")
HUD also has multifamily foreclosures for sale. CLICK HERE for a list.
- Lender REOs
-
As you begin your research for foreclosure properties you are likely to
become overwhelmed by the many different reporting, listing or information
services of REOs. Many of them will make claims to have everything
you need to find foreclosed properties, whether bank owned or government
owned, pre-foreclosure or post-foreclosure, statewide, nationwide or
local. Unfortunately, much of it will be misinformation, lists of already
sold properties, and a fair amount of BS and hype.
- Understanding and accessing public data and lists
-
The original civil judgment information services grew out of actual courthouse research that agents
did for credit bureaus, attorneys and title search companies. The information
had to be accurate, reliable and up to date. Because the demand for such information
has expanded to include many diverse interests, including landlords and real
estate investors, many firms have dramatically expanded their services and now
make all kinds of public record data available to all types of organizations
and even directly to consumers.
There are several such companies that deliver
accurate information to their customers, whether they are home buyers or investors.
Some of them specialize in foreclosures, understanding the type of data their
investors need and try to provide it in a timely manner.
- Local government is getting it up
-
Today many counties across America are making
their real property and public record information available on-line. That information
may include about everything from criminal records to overdue library books and
civil judgments, evictions and foreclosures. As they become available, we try
to establish a link from your LandlordAmerica State Pages. Visit your state page
often and watch for updates.
