Birmingham Government Foreclosures in Alabama

The recession hit the Birmingham, Alabama area hard. Employers laid off people in the manufacturing industry. As a result, the Birmingham area has had a large number of foreclosed homes, including government foreclosures.  Economists blame the rise in the foreclosure rate on the economy. As a result, home prices in the area have been affordable bringing investors and first time home buyers to the area.

According to Realtytrac, the Birmingham foreclosure rate for May 2010 dropped significantly to a 20% drop from April 2010. That puts Birmingham 37th in the nation for foreclosure activity. Nevada ranks number 1 with 14,346 properties, or 1 in every 79 households. Arizona, Florida, California and Michigan were also at the top five of the list. Vermont had the lowest foreclosure rate, with 19 foreclosure properties, which averaged out to 1 in every 16,454 housing units. The national foreclosure rate is flat from a year ago the same time, and it fell 3% from April 2010. There were 322,920 foreclosure properties, or 1 in every 400 households.

Where to Find the Best Foreclosure Deals?

HUD acquires ownership of FHA government foreclosures. Since they do not want to be in the real estate business, they are anxious to sell these properties at discounted prices. You can find cheap government foreclosure listings on the HUD website and in the local MLS. FHA foreclosed houses do not require a large down payment. You can obtain an FHA loan with 3.5% down if you meet the FHA guidelines. HUD acquires ownership of FHA government foreclosures. Since they do not want to be in the real estate business, they are anxious to sell these properties at discounted prices.

The Department of Veterans Affairs (VA) acquires properties that are VA guaranteed. VA properties are marketed through a property management service contract that was awarded to BAC Home Loan But certainly Venus in Taurus is a much more sensual influence, and this is one of its two home zones, so it could be a bit of a diet breaker over the next 28, but see us all enjoy the good things in life and love, to the full. Servicing, LP. Their  Properties can also be found in the local MLS.

It is suggested that you work with a local Realtor when making an offer on government foreclosures because these properties are listed with Realtors.

Why Buy Government Foreclosed Home?

Government foreclosed homes are sold at substantially discounted prices usually way below market. Right now, Birmingham prices are very affordable so you should take advantage and purchase government foreclosures.

There are a few things you should know about government foreclosures such as:

  • Homes are sold in an “as is” condition.
  • You are responsible for conducting a physical inspection on the property, as neither HUD nor the VA provide reports or make repairs.
  • You must make an offer through a Realtor.
  • You may qualify for an FHA loan on HUD foreclosed houses or a VA loan on VA foreclosed homes.
  • You must purchase the home as your primary residence. If no owner occupants bid on the HUD foreclosed properties, then investors may bid.
  • All VA properties are available for sale to both veterans and non-veterans.

Other non-government foreclosure properties are also available in the Birmingham, Alabama area. There are plenty of REO’s and short sale opportunities as well.  REO’s and short sales are sold at discounted prices too.

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