Government foreclosures are properties that have been taken over by the government because the buyer failed to keep payments current on a government mortgage loan, or failed to pay property taxes in a timely manner. For a list of foreclosed properties, you should contact your local county clerk or recorder’s office. In Michigan, a brochure is printed each spring, listing all properties in delinquent tax payments. These properties are liquidated through a sealed offer process.
Other properties sold by the government are listed on various websites that offer foreclosures. You’ll usually need to subscribe to the website for a fee, which allows you to access their full list of foreclosures. You should check first to make sure they have a government foreclosure list. The Fannie Mae and Freddie Mac websites can be helpful in finding government foreclosure listings. Both specialize in buying and selling distressed properties and have financing options if you decide to buy through them. You don’t necessarily need to buy a property through them to get financing.
All properties for sale to the public, through the government, are offered by property management companies. These companies contract with HUD to list and offer for sale government foreclosures. A HUD-registered real estate broker can submit an offer and draft a purchase contract on your behalf. If it’s written in the contract, HUD will also pay your broker’s fee.
When you are considering a government foreclosure purchase, you should definitely invest in a home inspection. All government foreclosures are sold as is, with no warranty. The buyer assumes all costs and repairs when the home is purchased. Special programs with reduced purchase rates are also available for firefighters, teachers, law enforcement officers, emergency medical technicians, non-profit organizations and local governments.
HUD Homes are any 1-4 unit residential property that has been acquired by HUD as a result of an FHA mortgage default. HUD becomes the owner of the property and offers it at a reduced price to recover the debt owed to the government. Anyone who can qualify for a home loan can buy a HUD home.