HUD Foreclosures

The office of Housing and Urban Development (HUD) offers special financing for first time and low-income home buyers and runs the "HUD Home Mortgage Assignment Program," designed to prevent FHA-insured homeowners from losing their homes in a HUD foreclosure. Under this program, your lender turns over your promissory note and deed of trust to HUD instead of foreclosing on your property. HUD pays off your loan and works with you to structure a plan to cure your default. When there are a lot of foreclosures, conceivably, HUD could take back tens of thousands of properties, but that would drain money from its fund. Therefore, HUD looks for alternatives to foreclosure and is likely to be far more flexible than an institutional lender in negotiating a workout on a defaulted loan that fits your financial needs.

If you're trying to avoid a HUD foreclosure, contact your lender regarding a repayment plan based on your current financial situation, possibly including a temporary reduction or suspension of payments. You may qualify for Special Forbearance if you can prove loss of income or an exorbitant increase in living expenses. Your lender may be able to work with you to obtain a one-time payment from the FHA-Insurance fund to bring your mortgage current. HUD also allows a pre-foreclosure property sale enabling you to avoid home foreclosure by selling your property for less than the amount necessary to pay off your mortgage loan. As a last resort, HUD may allow you to voluntarily "give back" your property to the lender. Although this Deed-in-lieu of foreclosure won't save your house, it saves your credit rating from the mark of foreclosure. Contact a HUD-approved housing counselor to explore your options at (800) 569-4287 (TDD (800) 877-8339.

Investing in Home Foreclosures

Whether you're a novice or a professional "rehabber," who fixes up foreclosed properties, you'll need to stay on top to come out ahead. We've gathered resources and culled information from varied sources to bring you timely information on Home Foreclosure Prices, and Financing Foreclosure Purchases. Why Buy Foreclosed Homes, you might ask. There are plenty of solid, smart reasons and we'll share them with you, along with buying foreclosed homes tips, and resources on Home Foreclosure Listings.