Friday, April 27, 2007

Government Foreclosures Guide

Foreclosure occurs when a homeowner fails to make mortgage payments on his homes. A homeowner is allowed to be late on a few payments, as long as they are paid soon. They have to pay the payments along with the late charges. Foreclosure homes happens when numerous mortgage payments have been missed and the homeowner is unable to rectify the situation with payments. The foreclosure process does not happen overnight. It can take up to three months, but do not be fooled by this lengthy time period. It is important to take action immediately on foreclosure homes. An average of 4% of all homes purchased will be foreclosed upon. Therefore, foreclosure is an issue to many people. Purchasing foreclosure homes may be beneficial to both the buyer and the homeowner if the purchase occurs at the right time.

Government foreclosures occur because owners fail to make mortgage payments on FHA insured loans or VA loans or because they fail to pay taxes or other amounts due to the IRS, USDA, or other government agencies.

You can buy a Government home for you to live in, or simply to rehab and sell for a fast profit. These foreclosures are offered to the general public through real estate agents that specialize in the sales of government homes.

HUD and the Veterans Administration (VA) foreclosure listings dominate the Government foreclosure market. Lending institutions are protected by the insurance provided by Fannie Mae and Freddie Mac on low interest loans offered to those who buy government foreclosures. When homeowners are not able to make their payments the banks refer back to the insurance attached to this mortgage loans. These homes then become government homes. Sometimes properties become government owned when they are seized from criminals.

There are large choices of available government owned listings including single-family homes, condominiums, and town houses, throughout different types of neighborhood all over the country. Prices for these homes may vary from one state to another. Some of these government foreclosure homes are older, but many of these available properties are comparatively new.

About the Author:Ernani Uchoa is the author of Foreclosure Deals - Online Leader of foreclosure listings. Search more foreclosure articles for free at

Thursday, April 19, 2007

Commercial Foreclosures - A Great Investment!

Most real estate investors are familiar with the in's and out's of buying foreclosed homes for investment purposes. But few people pay much attention to the commercial foreclosures market. This is a shame because commercial foreclosures represent a great way for someone like you to jump into real estate investing game and make some nice cash.Even though the population of investors who have commercial foreclosures on their radar screens is fairly small, this industry has still seen a sharp rise in recent years. This is partly due to the number of commercial foreclosures that are coming on the market, as well as the amount of profits that can be earned from these investments.Working with commercial foreclosures is quite similar to the foreclosures process that take place on traditional homes. Such properties are repossessed by the bank because the owner failed to pay their mortgage.So, in an effort to recoup some of its investment, the bank will sell commercial foreclosures to the public. Anyone who is interested in purchasing real estate can then buy these properties at a discounted price.Commercial foreclosure properties are those that can be used for business, such retail space. In most instances, investors will buy the commercial properties and rent them out to businesses that are in need of office space. This can be quite lucrative since because office space is at a premium right now, and there are always businesses on the look out looking for ways to cut costs.In addition to individual investors, there are alos other companies that will acquire commercial foreclosed property so that they can own their own building. For the most part, companies want to do this so that after the mortgage is paid off, they no longer have to worry about paying rent on their office space. This has proven to be a great way for companies of all sizes to reduce expeense and improve their cash flow.Commercial foreclosures are not nearly as popular as foreclosed homes, where you'll find the largest herd of investors. But that doesn't mean you can't uncover some nice gems. Now the best place to unearth commercial foreclosures would be to search around well populated cities.Of course the logic is that since larger cities have a higher number of commercial businesses, your odds of finding commercial foreclosures is significantly increased. But this isn't to say that commercial foreclosures are not available in smaller towns; they will just be a little tougher to uncover.Overall, investing in commercial real estate foreclosures can be very profitable. These properties offer a great alternative or addition to investors who want to diversify their real estate investment portfolio.

About the Author:The Phoenix Real Estate Talk! web site provides free information about buying, selling, and investing in the greater Phoenix, Arizona real estate market. There is also a discussion forum and free e-mail mini-courses. Visit Phoenix Real Estate Talk!

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