Government Foreclosures on homes will occur when homeowners default on:
•    Mortgage payments from lending institution
•    Taxes (local, state and federal) and assessments
•    Homeownership fees
•    Utility bills
•    Mechanics Liens (right to payment for contractual services on the house and land, legally executable by law) any

monies available after foreclosure sale will be appropriated according legal priority status.
Different agencies will handle government foreclosure properties. When the homeowners default on payments, the title of

property or deed reverts back to the government under certain conditions.
Fanny Mae and Freddie Mac are government secured insurances that homeowners apply for to reduce their mortgage payments

offered by their original lending institutions. Homeowners can benefit from lower taxes and a lower down payment if they

qualify for these government plans. However should they default on these payment plans, the bank or other lending company

that issued these government backed loans, will then go to the Fanny Mae, and Freddie Mac foundations to retrieve their

money, thus the property now becomes government property, and these divisions will proceed with the government foreclosure

sale.
Government bodies such as the US customs, and the department of internal revenue may directly seize property for nonpayment

of taxes and law violations.
HUD, or the US Department of Housing and Urban Development and the FHA, or Federal Housing Association are also responsible

for government foreclosure sales done through public auctions.
The Department of Veterans Affairs guarantees home ownership loans for military personal. In turn, they will seize property

that was guaranteed by the VA when homeowners default on payment.
Though since 2004, the VA Department sales off the property with a private contractor, Ocwen Federal Bank, OFS.
The US government HUD and VA guaranteed programs are only offered through licensed real estate agents and brokers that have

been approved by these government bodies. Another important thing to note is that you cannot reassign the government

contracts provided by the US Department of Housing and Urban Development (HUD) or the Department of Veterans Affairs (VA).
Similarly, these properties are sold at auction through the licensed authorized real estate agents. These real estate agents

receive a six percent commission for procuring a sale. Unlike other public auctions an investor must go through these

licensed agents to be able to bid. A person will need to provide a letter from their bank to assure that they can cover up

their bid and in turn the six percent real estate agent fee will be added to the bid. The letter from the bank is only valid

for a period of 60 days, so selection and bidding on property must be done quickly.
Before purchasing government foreclosure property, learn about your rights and obligations concerning these sales. The US

Department of Housing and Urban Development (HUD) can provide you with all available information on buying government

foreclosures, and the licensed real estate agents can provide you with the information as well.

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