HUD Foreclosures – Find Great Properties at Bargain Basement Prices

I’m sure at some point in your life you’ve heard someone say “if you want to make money you’ve got to buy low and sell high.” Of course this is usually easier said than done. When it comes to real estate investing a great way to “buy low” is to invest in HUD foreclosures.

HUD stands for the Department of Housing and Urban Development and is a branch of the FHA or Federal Housing Authority. The FHA guarantees bank loans to take some of the risk away from banks when making certain types of loans. One of the common loan programs that would be guaranteed by the FHA are first time buyer programs which allow people to get into a house with just a 3% down payment.

When a homeowner defaults on a bank loan that is guaranteed by the FHA, the FHA will pay the bank the remaining balance owed on the house and ownership of the house would then revert back to the Department of Housing and Urban Development.

HUD foreclosures consist of residential properties ranging from single family homes to 4 unit buildings. Many of the properties available for sale will require a little TLC. Houses that need some fixup can be obtained at a substantial discount and can be a fantastic investment.

HUD foreclosures can be found nationwide, in many different neighborhoods, and often times at very affordable prices. Whether you’re looking for a family home or a fantastic investment opportunity make sure you don’t overlook this potential gold mine.