FHA backed mortgages

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As everyone knows the United States of America went under the Great Depression in 1929-1933. These four years can be characterized with decreasing income, deflation, unemployment, the foreclosure markets also experienced that crisis.

It was time when the US government decided to found the Federal Housing Administration (FHA), officially it was opened in 1934. The main aspirations of government of USA in this situation are understandable. First of all it was needed to improve the situation with bad home loans; in the second place newly created organization had to support the growth of housing markets. And finally the foreclosure market of the United States of America was in need of innovations.

The housing project for WW II veterans was funded exactly by Federal Housing Administration. It has to be noted that Federal Housing Administration kept the stable prices on real estate markets within 1970-1980, the period of economic recession. Currently FHA can be named one of the world most powerful mortgage insurers. Even so FHA exists as governmental agency it invests in its programs only with FHA own profit.

Because of such situation FHA was accepted as a unique government organization just until Housing Urban Development (HUD) applied for help of taxpayers. It happened because of Federal Housing Administration budget deficit, so that help from Congress was the single possible way out of the situation. In order to deal with high risk mortgages and to boost up its performance in reaching main goals of agency, FHA developed some special projects, for instance the FHA Secure program. The objective of the program is to to provide their clients with opportunity to invest means into FHA insured mortgages because of relatively low mortgage rates. The FHA Secure program results from the disability of FHA average client to obtain the private insurance policy and to pay back the average mortgage rate.

Moreover agency cooperates only with such borrowers who were qualified by American government. Not so long time ago the Recovery and Reinvestment Act was signed, according to it 2008 Fannie Mae, Freddie Mac and FHA loan limits were reinstated.
Feel free to search for FHA foreclosures, HUD homes and other types of foreclosed properties.

How to Find Foreclosed Homes

It is not complicated task to find a foreclosure home. One has to keep in mind only one detail, that situation is different on different types of market. To give an example, strong and developing real estate market will offer much less foreclosure properties then falling markets, which are characterized with depression. There is one nice way to find a REO property. Imagine, that you are driving your car throughout the district you want to have house in. You will probably see numerous signs, but now we are looking for simple text, such as: Foreclosure, Bank-Owned, Bank Repo.

Don’t pass this sign by, take a cell phone a call on agent, ask him about the foreclosure list which haven’t appeared on the market yet. It is common situation that foreclosure agents wait for a long time until bank set the price level. So asking for not listed foreclosure house will bring you several steps forward. The task becomes even easier if you have hired an agent, so he will find for you all the information needed.

Nowadays listings REO properties are available even through internet, you can find them on special websites. Below you will find a list of national lenders who offer REO property listings.