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FHA Foreclosures Best Source for Novice Real Estate Investors
FHA foreclosures are one of the best places for novice real estate investors to look to pick up prime properties at a discount.
FHA loans are not made by the government. They are made by banks, but the U.S. Federal Government guarantees the loans. That means that if the borrower defaults, the government is on the hook for the mortgage, so that the bank doesn't have to worry about losing money. Essentially, this means that when the home goes into foreclosure, the government owns the home.
The FHA relies extensively on an auction system to get ride of excess properties. People who are aware of FHA foreclosure auctions can often pick up good deals at the events. Many people who have been involved in home flipping for years have used FHA auctions to generate many of their properties. They buy the properties, fix them up, and sell them for a great deal more money than they paid.
FHA foreclosure programs are an excellent opportunity to build instant equity in a property. Investors also qualify for very low down payment options which can make getting started in real estate investment possible for people without a large wad of cash upfront.
Your HUD or FHA foreclosure investment property can be purchased with an FHA foreclosure loan or a federal administration mortgage. When an FHA foreclosure is purchased, the Federal Government insures the bank that the FHA home loan will be repaid, even if the government has to do it.
About Michele Sliwa: Music City’s Business Woman’s Realtor, Michele Sliwa combines success in the fashion & event planning with her experiences as a property manager to guide anyone through the perplexing maze of home building, selling, and buying. While working closely with builders and designers as her house was being built, it became apparent that Michele had an innate ability to understand complex processes and make smart decisions with ease; her builders and designers strongly suggested she become a realtor. Since then, Michele has perfected the art of real estate interpretation and communication and her clients value her ability to manage and clearly explain all of the moving pieces of the buying, selling, and remodeling process. Michele successfully completed the Masters Business Agent program and is a New Home Specialist. Michele has the uncanny ability to spot trends in the market before many others do; this unique talent gives her and her clients a distinct edge. She is a self-professed foodie and amateur chef. Michele is passionate about art and music and volunteers for the Nashville Symphony and Nolensville Elementary School.