Foreclosure Loans

Foreclosure loans are refinance loans that are used to prevent the foreclosure of the property. Foreclosure loans are based on the property's equity, rather than the borrower's credit, and are priced higher than conventional loans. The purpose of a foreclosure loan is to provide borrowers with the time and resources to sell their houses or secure their financial situations, and therefore avoid Home Foreclosure.

Types of Home Foreclosures

The type of loan that was used to purchase the foreclosed home determines the type of Home Foreclosure. For example, if a home was purchased using a conventional loan, the type of Home Foreclosure will be a bank Home Foreclosure. If the loan was insured by an organization, the home becomes the property of that organization in the event of Home Foreclosure. FHA (Federal Housing Authority) loans that result in Home Foreclosure become HUD Foreclosures, and there are also Fannie Mae (FNMA - Federal National Mortgage Association) foreclosures, and VA (Veterans Administration) foreclosures. If the Home Foreclosure results from nonpayment of taxes, it is an IRS foreclosure.