foreclosure homes austin texas

Looking for a foreclosure / HUD home in Austin, Tx?

December 19th, 2007 Categories: Austin Area News and Events, Dripping Springs Real Estate News

WHAT IS A HUD HOME?

In 1934, The United states government started a department called the Federal Housing Administration (FHA) and later became part of the Housing and Urban Development (HUD).

The FHA loan program has two objectives. The first is to allow individuals to purchase a home with a small down payment. The second objective is to protect the lender in case the buyer defaults on a mortgage.

FHA is an insurance policy given to the lender to protect them in case the buyer defaults on the mortgage, premium of this policy is paid by the buyer that is called Mortgage Premium Insurance (MPI).

HUD homes are properties with FHA loans that have gone through the foreclosure process. The bank which owned the FHA insured loan on that property completes the foreclosure process and will take over the property. The bank surrenders the property to the FHA and gets reimbursement for the loan. FHA then turns the property over to HUD and HUD acts as a liquidator for FDHA.

We are seeing new foreclosures hit the market weekly and great deals are to be had!

HOW DO I FIND A HUD HOME?

Finding the right HUD home can have you walking into instant equity. Call Jeremy K. Frost today! REALTOR & Real Estate Blogster 512-636-2746

This entry was posted on Wednesday, December 19th, 2007 at 2:18 pm and is filed under Austin Area News and Events, Dripping Springs Real Estate News. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.