Category — Foreclosure

The secretary of the U.S. Department of Housing and Urban Development (HUD), Shaun Donovan, announced on Friday, January 15, 2010 that the government agency will temporarily allow buyers to finance the purchase of real-estate owned (REO) properties with FHA-insured mortgage financing.

The temporary HUD offering becomes available on February 1, 2010 and will remain in effect for one year. Whether or not the program remains in place sits in the hands of David Stevens, who is the commissioner of the Federal Housing Administration (FHA).  

The Internet has many valuable resources for people shopping for a new home. All new homebuyers want a great deal, and in this economy, many people are promoting the value of finding homes in foreclosure. You may be able to find a great deal on a home in foreclosure, but using the Internet to find these homes can be a double-edged sword. Beware of websites promoting foreclosures, because they can turn around to haunt you in a variety of ways.

The Federal Housing Finance Agency (FHFA) released first quarter 2009 foreclosure data. The results probably won’t astonish anyone who has been riding the bumpy road of the economy, where joblessness has reached its highest level since the early ‘80s. The FHFA report revealed that foreclosure rates for the fourth quarter of 2008 totaled 149,981 and increased to 243,824 by the end of the first quarter of 2009. This is slightly more than a 61% increase in a three-month period.

With foreclosures on the rise nationally, investment opportunities are available for individuals and investors. When buying a foreclosure, follow the tips below to increase your opportunity for financial success.