Government Foreclosures

Those distressed assets seen in auctions usually come from and are managed by the HUD or the Housing and Urban Development Department of the United States.

More often than not, foreclosed assets under HUD are results of unpaid mortgages made through government programs like Federal Housing Administration (FHA) loans. HUD also have foreclosed assets by private lenders - this is due to the fact that some assets are subject to a government-insured loan. Auctioned assets under HUD are sold to the highest bidder.

According to Zalman Velvel, a Certified Commercial Investment member (CCIM) in his interview with Consumer Affairs, auctions carry the most risk in terms of distressed assets buying. But, according to Velvel, "At the same time, they can also offer the greatest reward. Sometimes you can make as much as 40% on an auction foreclosure. But you have to know what you're doing."

Generally, auctions aren't really the most advisable option for individuals who are seeking for a "stable" home to live in. But, this option is actually beneficial to those who do foreclosure investments.

For a complete list of Government/HUD foreclosed assets in San Diego, we recommend that you contact the local office directly or go to HUD's official website.

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