A FHA foreclosure is a mortgage with insurance from the Federal Housing Administration which has fallen behind in payments and as such has forced a foreclosure upon the property held under the mortgage. If your house is at risk, don’t worry. There are many options available to help you stop foreclosure and save your home.
It is believed that there FHA borrowers are more vulnerable to foreclosure when financial problems arise due to the fact that they have less resources than other borrowers. Whether that is the case or not is debatable, however inquiries and investigations are being conducted to discover whether or not FHA borrowers are at a higher risk of foreclosure.
Many FHA loans are issued to first time home buyers. This is a great program for these homeowners, because they often need extra help with securing a mortgage. FHA loans provide an opportunity for those who can’t get a mortgage through traditional means, or who need a more flexible down payment and monthly payment amount. Because many people with FHA loans are first time buyers, however, they may be more vulnerable to missed payments and other pitfalls.
FHA foreclosure provides a unique opportunity for buyers, but home owners will want to ensure that they do everything in their power to avoid their home going into foreclosure. Those that do have mortgage troubles should know that the FHA will be much more flexible than a bank at helping them get on track.
FHA is part of Department of Housing and Urban Development (HUD) and you can find listings of FHA foreclosure properties on sites like foreclosure.com. They may either be called FHA foreclosures or HUD foreclosures but they essentially refer to the same types of foreclosure property.
If you have a FHA insured mortgage and think you are close to foreclosing or have already been issued a notice of default then right now is the time to act. HUD has released some guidelines and tips to help you avoid foreclosure. These include not ignoring the problem – a big mistake many people make. They also advise that you contact your lender right away and to respond to all correspondence from them promptly. Then you can contact a HUD approved counselor for specific help but they recommend avoiding foreclosure prevention companies and recovery scams.
A great piece of advice from HUD is to know your mortgage rights. By knowing your rights you are in a much better position to relieve yourself of the stress relating to impending FHA foreclosure of your home. One of the best ways to protect yourself is by knowing your rights.To do this, read up on FHA loans and foreclosure prevention. The more you know, the better equipped you will be to save your home.