Foreclosure numbers are staggering and they are likely to continue until some type of aid is available to the average homeowner who is losing their job, unable to make payments or just made a poor financial decision. The FHA and HUD actually provide some help to individuals who are facing foreclosure or who wish to avoid it.

What To Do Now

If you are at risk of foreclosure, you need to do something now. Do not wait as this is a sign of your willingness to go through with the foreclosure. Instead, invest the time in getting help.

#1: Talk to an FHA housing counselor about your situation. They may be able to point you in the right direction in terms of stopping the foreclosure process. There IS help available for many people.

#2: Talk to your lender. Today’s lenders are more willing than ever to keep you in your home by finding a solution to foreclosure. When they call, tell them what is happening and what type of help they can offer. They may allow you to skip a payment or help you to refinance the loan into a lower rate.

#3: Find out if you qualify for HOPE for Homeowners, a program designed to provide resources to individuals who wish to remain in their homes but who are having trouble refinancing or getting into a more affordable loan.

Should You Keep Your Home?

Those without income may be unable to remain in their home since no amount of mortgage can be paid. If you do have a job and you do wish to stay in your home, find out if there are any options to help you to do so. If you lose your home to foreclosure, lenders will not lend to you for years to come. With the credit market being so tight, even with good credit, you will struggle to find a lender to buy another loan, or even a rental agent who will rent to you. In other words, if you can stay in your home, do so.

Those who may be having trouble with lenders or those who are unable to find the help they need otherwise, may wish to look for help directly from FHA loan specialists. The goal you have is to get help now. Do not wait since it only takes a few months before you are too far into the foreclosure process to stop it.

Looking for FHABook.com?  Don’t worry, you’re not in the “wrong” place.  It’s all right here.  As of December 2008, FHABook.com’s two principal writers are now full-time contributors to FHA Mortgage Center.com’s Blog as well as to our Consumer Guides, Loan Library, and all of our resouces on FHA Loans.

After being a fan of FHABook for some 2 years, our staff was happy to strike an arrangement to bring our forces together under one website.  If you’re a fan or reader from FHABook - please update your RSS feeds or blogroll mentions accordingly.  Welcome to FHAMC!

And if the new partnership isn’t enough to be excited about, this week will see the launch of our first project together with FHABook - the FHA Mortgage Center.com FHA Loan Guide.  It’s got everything a prospective home buyer could ever want to learn about using an FHA Loan.

This is just the first example of our collaborations yet to come, all in the name of keeping our readers and the general public informed about one of the most frequently-used home loan options on the market today.

Did you know that HUD, the Department of Housing and Urban Development is in the business of selling homes?  Well, that is not exactly the case but it is something that home investors should consider.  If you are considering an FHA loan, or you are looking for a combination of a low priced home with a low priced mortgage, then you definitely want to look at the opportunities that HUD offers.

At HomesSales.gov, you can find a listing of some of the most current homes for sale from the US Government.  Now, before you worry too much, consider what these homes are on the market for.  Many times, taxes go unpaid, seizes happen, or the properties are simply turned over to the government for other reasons.  Yes, in some cases, it has to do with criminal situations, but the government is selling these homes through a public auction, which means that you could get them for next to nothing.

Is The Price Right?

Some of the homes available are quite low in price simply because the government needs to sell them.  Just as if banks have homes that they have foreclosed on and are trying to sell as quickly as possible, the same is true for these US Government homes for sale.  When you visit their website, you can click on the state of your choice and see the properties in question.

For example, through a quick search, I found that a four-bedroom home for sale in Anaheim California is at under $370,000.  That is good for that area.  It tells me why the home is in the hands of the government (in this cases it was forfeited.) and it tells me many of the specs of the home.  As you can see, the process is simple to do, but you cannot make your purchase on that website (this is not eBay after all.)

Getting Into The Homes

Rather, you do have to work with a real estate agent that has approval to sell through HUD.  Many (if not most) are.  When you work with the agent, you will be able to get even more details and find out when the auctions are held.  In most situations, these government homes for sale auction through real estate agents, though some do allow the public to come and make their bidding happen.

Funding for such a purpose can be complete in a number of ways.  It is usually necessary to have a detailed document from your lender approving you for the loan in the amount of at least as much as the auction price.  Most auctions do require that you have preapproval for a loan or show that you have the necessary cash to pay for the property.

Should You Buy This Way?

Some people may believe that purchasing foreclosed or government seized property is in bad taste, but it is one of the best investments you can make.  Most of these properties are in decent shape, having working systems throughout them and are a good value.  If you couple this with an affordable loan (you may qualify for an FHA loan), you could be saving yourself a substantial amount of money in the process.

Before purchasing any home, you should have the opportunity to see it and inspect it.  Contingencies are allowable on most auctions.  While this sounds like a great opportunity for an investor, and it is, it can work well for any homebuyer looking for an affordable way to get into a home of their dreams.  There are no guarantees about the overall condition of any home, of course, as each is different.