HUD Homes and government-owned properties are similar to Bank Owned property: They’re equally motivated to sell. Government foreclosure inventory includes residential and commercial property from federal, state and local governments.

Where do Government Foreclosures come from?
HUD (U.S. Department of Housing and Urban Development) is a federal agency that implements housing policy and was created to increase homeowners hip across America. It accomplishes this by insuring loans for people who can afford only a low down payment or who don't meet standard credit criteria. HUD loans are higher-risk loans and therefore have a higher default rate.

When HUD mortgages are foreclosed, the properties are sold to the public. Since the foreclosure is insured by HUD, the government must pay the lender the amount due on the loan. When the loan is paid off, HUD takes possession and can dispose of it in any reasonable manner. In order to bid on a HUD home, you must submit your bid through a designated HUD broker. Normally, HUD homes are sold during an Offer Period. When this ends, all offers are opened and the highest reasonable bid is accepted. If your bid is accepted by HUD, your real estate agent will be notified, usually within 48 hours.

VA (Veterans Administration Loan Guaranty Service)
This service helps veterans and active duty service personnel buy and retain homes in recognition of their service to the United States. The VA guarantees the home loans, which enables veterans to purchase on more favorable terms. The VA acquires properties as a result of foreclosure on VA guaranteed loans. You are not required to be service personnel to purchase a VA foreclosure. You are not even required to be an owner-occupant, making these auctions attractive to investors. When you find a home for which you’re interested in making an offer, have your agent or the listing agent prepare the "Offer to Purchase and Contract of Sale" form, plus all other required documentation. Your agent will submit your offer through the listing broker for approval.

Fannie Mae (Federal National Mortgage Association)
Fannie Mae's goal is to help more families achieve home ownership. It does this by providing financial products and services that help low, moderate, and middle-income families buy homes. A Fannie Mae foreclosure is a home that originally had a conventional mortgage, which was sold to Fannie Mae and then resulted in foreclosure. Fannie Mae owns the property and tries to sell it in order to recoup the original mortgage balance. All Fannie Mae-owned homes are sold through local real estate brokers, so any qualified real estate broker can assist you in submitting a bid.

Freddie Mac (Federal Home Loan Mortgage)
Freddie Mac is a publicly traded corporation chartered by Congress. Its mission is to keep money flowing to mortgage lenders to support home ownership and rental housing. Freddie Mac markets its foreclosures through a division call HomeSteps, which also provides financing services through a select group of lenders who are skilled these purchases. Special financing includes low down payments and reduced closing costs.

FDIC (Federal Deposit Insurance Corp.)
The FDIC insures deposits in banks and thrift institutions for up to $100,000. When a financial institution fails, the FDIC steps in to service existing loans. If a defaulting borrower refuses to pay or provide the necessary financial information, the FDIC seeks recovery through foreclosure. All FDIC properties are sold in "As-is" condition. All FDIC property includes contact information for submitting a bid.

GSA (Government Services Administration)
The GSA promotes effective use of federal real property assets, and helps dispose of real property, which can include single and multifamily residences, undeveloped land and even commercial and industrial facilities. The GSA disposes of surplus property via competitive sale or auction. Since 1987, GSA has sold over $3 billion worth of property across the United States.