A FHA foreclosure is a legal process in which a mortgaged property that was acquired using a government loan program goes into default. The Federal Housing Authority provides government backed loans to qualified buyers in the same way a bank does. It also repossesses distressed properties which are known as FHA foreclosures. FHA foreclosure listings offer great buying opportunities since they are priced well below market value.
After the 2008 collapse of the mortgage market the FHA's role in lending to first-time buyers with poor credit and limited cash expanded greatly and put it at the forefront of the government's effort to revive the housing market. Although the government does not issue loans, it does ensure a lender will receive the remainder of any money owed on an FHA loan. The number of FHA home foreclosures increases every day, and these homes are usually in good condition. Visit our Education Center to get more information about buying foreclosures in your area.