Invest in Government Foreclosures

While watching late night you may have seen the infomercials that tempt you into buying homes at government foreclosures auctions, and more than likely you probably dismissed these offers as a get rich quick scheme that will never work. It is true that government foreclosures may not be the amounts of money that you see and hear on television; they have an essential place in the real estate industry. 

You must know how to find government foreclosures and understand what they are before you can do anything with them. Government foreclosures are properties that the FHA insured the loans. This lending arrangement means that the FHA insured the lender that the owner will meet the financial obligations that are required. But when the owner fails to do this, the lender will then take the home back. At this time, the FHA is then responsible for reimbursing the lender for any losses that they may have incurred. The FHA loses in two ways; they do not get the home, and they also have to pay the lender for their losses.

There are several other ways that the Government can foreclose on properties. If somebody tries to avoid paying taxes, the IRS may seize the property and sell it. In extreme circumstances, the government may foreclose on a home when the homeowner goes to jail. Instead of letting the house go to waste, the house turns into a government foreclosure.

Auctions are usually how the government sells foreclosure properties to the public. Since these auctions are help publicly, that means that anybody interested in these home can attend one of these auctions and bid on any of the houses. Often, investors suck up these government foreclosures the first chance that they get. It is not uncommon to find government lists foreclosures at 10% or more off of the market value price.  This reduction in costs means that you can buy a home, and then quickly flip it to turn a profit. You can find Government foreclosure auctions in the classified of your local newspaper; the listings are in the real estate section so that as many people as possible can find out about them.