If you are looking for federal foreclosure homes in Paterson, New Jersey, you should check with government agencies including The Housing and Urban Development Department (HUD), the Veterans Administration (VA), Small Business Administration (SB) and the Federal Deposit Insurance Corporation (FDIC). The most common federal foreclosure homes are HUD and VA. You can also check with a local Paterson Realtor because much government foreclosed homes are listed with local Realtors.
Government Insured Homes
When borrowers default on their government insured loans such as FHA and VA, these homes are insured by the government so the lender gets paid and the government takes back ownership of the homes. If the home is insured by FHA, then HUD acquires title. VA acquires title on all VA homes where the borrower has defaulted. The public can bid on the homes and acquire them at discounted prices. HUD or the VA, depending on which agency you are making an offer with, will advise your Realtor if your offer has been accepted.
Seized Homes
You can also find Paterson government seized foreclosed homes by looking on the Department of Treasury website. These homes may have been seized by various government agencies such as the U.S. Customs, IRS and U.S. Marshals and are sold at auctions for discounted prices check each government website to find a list of sale dates, places and times. Properties purchased at auctions must be paid for in cash.
Inspections and Due Diligence
Buyers and investors are reminded to conduct all their due diligence and inspections prior to closing. Homes are sold in an “as is” condition so you want to know the condition of the home by having a home inspection. Many times the homes are in poor condition, the former owners have stripped them and they may need major repairs. A local Realtor can provide you with a comparable market report at no cost so you know how much to offer or bid for the property. By having an inspection, you can budget for repairs that need to be made immediately and decide if you want to go forward with purchasing the home. You should also check local building permits and codes to make sure you are able to use the property the way you wish and to make sure it is in compliance with current health and safety laws. The home may be grandfathered in regarding zoning changes and building code changes, but if you are going to tear it down, then you have to comply with current building and zoning standards.
Tips
When you make an offer on a HUD or VA home, you need to do it through a local Realtor. You must find your own financing if you are not paying cash. Although, properties purchased at Paterson foreclosure auctions must be paid in cash.HUD requires full price offers on their homes. If you qualify for a FHA loan, you must purchase FHA mortgage insurance as well. In order to purchase a HUD home, you must reside in the property as your primary residence. If HUD does not receive any bids from buyers who intend to use the property as their primary residence then investors can bid and purchase the HUD home. Whenever possible, conduct a home inspection so you can determine the condition of the property. Federal foreclosed homes are sold in an “as is” condition. HUD may agree to pay your closings costs up to 3% of the total purchase price. HUD also pays broker real estate commissions as long as special language is provided in the contract asking them to pay the commissions.
When you purchase federal foreclosed homes, they offer you an opportunity to buy a quality home in a neighborhood of your choice below market prices, and you are getting a property with built in equity. Cash buyers have an advantage when it comes to purchasing government foreclosed and seized auction properties. There are a lot of other buyers looking for government seized and foreclosed homes. Since government foreclosed homes are popular and sell quickly, don’t hesitate if you find a good quality home that you want to buy
