Terms Foreclosure: A real estate foreclosure is a legal process that gives a lender the right to repossess a home that a borrower was unable to repay, in order to secure their loan.
HUD Homes: The Department of Housing and Urban Development (HUD) is a federal agency that insures home loans to homeowners through its Federal Housing Administration (FHA). When a property owner defaults on a HUD insured home loan, HUD purchases the home from the lender and sells it to the public at auction.
Pre-foreclosure: Pre-foreclosure is an action that gives public notice of the start of the foreclosure process on a property. It provides a potential buyer the first opportunity to purchase; and it gives the defaulting borrower time to sell or refinance.
Foreclosure Auction: A foreclosure auction is a public sale in which properties are sold to the highest bidder. Investors and homebuyers are welcome to bid at auctions.
REO Property: An REO property is referred to as a bank foreclosure property. It is a property that did not sell at auction and has been returned to the lender to sell.
VA Foreclosure Properties: The Department of Veterans Affairs (VA) is a federal agency that guarantees mortgages to homeowners who have served in the military. When a property owner defaults on the loan, the VA buys the property from the lender and offers them for sale.
Fannie Mae Properties: The Federal National Mortgage Association (FNMA) is commonly known as Fannie Mae. Fannie Mae foreclosure properties have been purchased from lenders and will be offered for sale to the public at a discounted price.
What’s does Foreclosure mean?
A foreclosure is simply a property that has been legally taken over because the previous owner has not paid his or her mortgage. The homes are offered for sale to the public by the government or lender responsible for the loan. In most cases, the sellers want to get rid of this type of property fast (before it starts to cost them money), so it's possible to find great bargains. When foreclosed homes are put on the market, they are appraised and priced "fairly", usually defined by the relevant state as a certain percentage of the home's assessed market value. The assessed value depends on the home's condition, neighborhood, nearby schools, and other factors, in addition to the general demand for housing. However, in the rush to sell foreclosed properties quickly, appraisals are sometimes made hastily and consequently the houses may be undervalued.
What's a HUD home?
When someone with a Federal Housing Administration (FHA) insured mortgage didn't make the payments, the lender foreclosed on the home; FHA paid the lender what was owed; and then the United States Department of Housing and Urban Development (HUD) took ownership of the home. HUD then sells the home at market value as quickly as possible. HUD properties in Colorado are managed and marketed by Chapman Law Firm Real Estate Services. CLFRES maintains and sells these properties in accordance with HUD guidelines. Our goal is to provide you with all the information you need to be a knowledgeable home buyer. Regardless of whether you are a buyer looking for a home to live in, or a seasoned investor, we think you will find this site invaluable in your search for a home that meets your needs.
