While bank foreclosures account for the larger numbers of foreclosures, a reasonable number of government foreclosures are also part of the nation’s foreclosure property.
Various government agencies hold the power to foreclose on property if the property owner does not make his/her tax payments in a timely manner. Once the property is foreclosed upon, the responsibility of its sale goes to the Department of Housing and Urban Development.
The Department of Housing and Urban Development then sells these properties through a process which requires interested buyers to place ‘sealed’ bids though HUD approved real estate agents. This, therefore, makes it necessary for you to get in touch with one such agent.
While these agents can also help you look for government tax foreclosure listings, you can do so on your own too. The web site that the Department of Housing and Urban Development has in place offers zip code specific government foreclosure listings.
Once you have a list of properties you are interested in, you can get your agent to fix appointments for the inspection of these properties. Even though most of these properties com with ‘property reports’, it is still advised that you carry out inspections on your own. This is because having first hand information about what you might be getting into is always a good idea.
Once you have placed a bid for a government foreclosure property, you have to wait until the end of the bid period to know if yours is the winning bid. If your bid does end up being the winning bid, you are informed of this through your agent.
While buying amidst government foreclosures can get you a great deal, you must remember always remember to tread with caution.
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Written by Alex Rolim.
