What is the difference between an FHA foreclosure and a regular foreclosure?

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I purchased my home with an FHA loan a few years ago, but now I'm having trouble making the mortgage payments. If I go into foreclosure, how will my FHA foreclosure be different from a regular run-of-the-mill foreclosure?


Just because your loan is insured by the Fair Housing Administration, or the FHA, that doesn't mean your foreclosure will be different from any other foreclosure in your state. The process should be the same. FHA loans are geared towards borrowers who often don't qualify for conventional home loans; these borrowers include first-time homebuyers or those with low or moderate incomes. The FHA insures lenders against some of the risk involved in lending to these types of borrowers, but the loan itself comes from your lender, not the FHA. Your lender will use the same process to foreclose on your home as it would to foreclose on a home securing a non-FHA loan.

To find out what the foreclosure process is like in your state, see the articles in our Judicial v. Nonjudicial Foreclosure section. For specifics on the foreclosure process as set out in your state's foreclosure statutes, find your state in our State Foreclosure Laws section.