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.

The different types of Home Foreclosures are sold by the owning organization. Each of these organizations has information on purchasing Home Foreclosures. It's not necessary to get a loan from the organization that is selling the Home Foreclosure. In fact, some - but not all - Home Foreclosure purchases require cash payment, and won't accept financing arrangements.

No lender or insurer wants Home Foreclosures. Lenders and insurers are in the business of making and insuring loans, not owning Home Foreclosures. So regardless of the type of Home Foreclosure, the owning organization will be motivated to sell the property.

If you are interested in purchasing any type of Home Foreclosure, it's best to do your homework. In addition to contacting bank REO (real estate owned) departments, you can also get information on the Home Foreclosure inventory of loan insurers and the IRS by contacting the organization directly. But it's is also best to contact a licensed real estate broker that knows about buying and selling Home Foreclosures, as he or she may have resources to find otherwise unadvertised Home Foreclosures.