As the real estate market softens in several areas throughout the nation, there is one segment that continues to shine: FHA reverse mortgages.

FHA stands for the Federal Housing Administration, which provides mortgage insurance on loans made by FHA-approved lenders throughout the United States and its territories, according to its official Web site.

FHA reverse mortgages enable the older sector of American homeowners — senior citizens aged 62 years and older — to retire comfortably and remain in the homes in which they have been living for years. This program provides great opportunities for those who have paid off their mortgages (or are about to) to borrow against the equity in their homes.

The most attractive part of this program is that the loans do not have to be repaid until the borrowers move out permanently.

While this is somewhat of an age-restricted borrowing strategy, it will eventually pertain to all homeowners as they reach their golden years. In addition, it’s also something that sons and daughters of aging homeowners should talk to their parents about if there is a need to cover living expenses — past, current and future.

However, the current dilemma with FHA-backed reverse mortgages is that the mandated cap is only $362,790, which doesn’t help those who are living in costly areas.

Fortunately, there is good news on the horizon.

According to The U.S. Department of Housing and Urban Development (HUD) — the federal agency that oversees FHA operations — more senior citizens will be able to qualify for reverse mortgages with the enactment of The Expanding American Homeownership Act of 2007.

In short, if Congress enacts this Act, seniors who have homes worth more than the FHA loan cap but less than $600,000 will be able to qualify for the reverse mortgage program.

So get ready and take aim if the U.S. House of Representatives passes this legislation. It is a gateway for more and more baby boomers to secure financial security and enjoy their retirement years to the fullest.

They have earned it.

Is it really possible to go to police and/or government auctions to buy things such as cars, trucks — even real estate — for rock-bottom prices?

Some quick searches on Google revealed that the answer to that question is an overwhelming, “Yes.”

In fact, there’s a good government site that we came across known as USA.gov that features quality products at affordable prices. This Web site is the creation of the Department of Housing and Urban Development (HUD) and the Department of Veteran Affairs (VA).

In addition, OCWEN — a global financial services company offering a variety of products and services related to residential and commercial mortgage servicing — is one of the sites that offers a great selection of Real Estate Owned (REO) listings.

General Merchandise Auctions is another good link for government auctions.

Overall, we found that there is some very useful information on these government sites — check them out when you have some time. Many of these items are online auctions and can be bid on by anyone. However, there is one shared caveat among the respective sites that warrants attention:

“PLEASE CONTACT THE PROPERTY CUSTODIAN TO MAKE AN APPOINTMENT TO INSPECT THE PROPERTY BEFORE YOU ATTEMPT TO BID.”

Hmm … how is someone supposed to go see, for example, some old computer parts in Indiana when he or she lives in Florida and is only bidding $50?

The chances are that person will have to trust the buyer. And in these instances, especially if there is a solid chunk of change at stake, we recommend that you exercise extreme caution.

For those reading this who have actually found, bid and purchased anything on these government auction sites, please share your experiences in the comments section below. We, as well as our visitors, are very interested in learning more about your results.

Now down to business.

At Foreclosure.com, we list hundreds of thousands of properties on our Web site from numerous government sites, as well as include several other sources of distressed homes. We aggregate that data and provide it to you in one convenient place as opposed to going to multiple sites.

What’s more, we also buy lists from multiple sources that do not have Web presences. At the end of the day, it turns out being quite helpful for people who cannot afford to pay a lot of money for these files.

It’s the reason we are the number one (and most reliable) source of real estate investment property information for police and government auctions … and so much more.

Location and real estate go together like peas and carrots.

Cliche? Without a doubt.

But there’s a reason that the phrase “Location, location, location” is has such a familiar ring to it — because it is true. Buyers who have the foresight to capitalize on real estate opportunities in desirable areas early often enjoy the financial rewards sooner rather than later.

Sure, numerous buyers often step in … er, get lucky when it comes to finding hot locations. Sometimes there’s just no telling that a neighborhood or town is on the verge of resurgence before it’s too late. However, it’s sometimes simple to manufacture good fortune rather than just crossing your fingers and hoping for the best.

For example, the American Association of Retired Persons (AARP) recently released its, “5 Great Places to Live” in the United States. This is a practical list that takes into consideration culture, work options, mass transit, fitness opportunities, and more — it’s not just a list of ideal destinations for retirees.

Indeed, the article attempts to find the locations that appeal to buyers at all stages of life, from “young families to active retirees, and everyone in between” so that older residents (and there are increasing numbers of them as boomers reach retirement age) are not a drain on a community’s resources but are an asset to them.”

So what does that mean for you as an investor?

The short answer is research locations that appeal to the largest buyer pool possible, particularly areas and neighborhoods that cater to young professionals and senior citizens alike.

This will more than likely ensure that your investment remains equitable (and perhaps appreciates over time), possessing strong resale value.

Here are the AARP top five spots:

• Atlanta, Georgia
• Portland, Oregon
• Chandler, Arizona
• Boston, Massachusetts
• Milwaukee, Wisconsin

To find distressed properties in these locations remember to check out Foreclosure.com for the best deals in real estate. We update our comprehensive database of more than 1.2 million listings at least twice each day.

And, it’s as easy as pie to search!

Foreclosure Tip: Search for local real estate agents – REO pros – who specialize in the foreclosure market.

The reason: Purchasing an REO is typically not as clear-cut as purchasing a home in the traditional sense. If a you are looking for a real estate “deal” then you should use a real estate broker who knows the ins-and-outs of foreclosure properties. In fact, REO agents often offer a team of skilled inspectors and repairmen who can help you spot and ward off trouble before you sign on the dotted line.

“REO” defined: When a lender takes ownership of a property as a result of the foreclosure process, the lender then calls the property an REO, which stands for “Real Estate Owned.”

To keep investors and future homeowners up-to-date on the latest real estate news, Foreclosure.com features an Article Center that we update each day. These articles are also archived in the left sidebar for your convenience.

Bob Bruss — who is widely known as the “Dear Abby” of real estate — is often featured in this section. He leverages more than 23 years of experience in the industry to provide readers with usable information.

And a recent article on “10 things investors should look for in fixer-uppers” is certainly no exception. It’s a simple approach on how to profit in today’s real estate market with homes that need a little “TLC.”

Whether you call them “fixer uppers” or “handyman specials,” there are not too many other businesses other than flipping real estate that can generate a similar return on investment in such a short timeframe.

Consider the following:

1. Basically sound condition without major structural defects
2. Good location with a low crime rate
3. Good-quality school district
4. Need for profitable cosmetic fix-up work, but not major unprofitable repairs
5. Purchase price at least 30 percent below the market value of nearby comparable homes in good condition
6. Purchase from a motivated seller who is anxious to sell
7. Affordable low-down-payment financing
8. Seller or tenant will vacate immediately upon transfer of title
9. Within a 60-minute drive from your current residence
10. Good demand from renters and/or buyers

To read the entire article check out InmanNews.com (subscription required).

Now, the quick steps mentioned above are not going to turn you into a pro overnight. But, use them as a guide as you research potential investment properties on Foreclosure.com.

The best general advice we can offer on this topic is to go after houses that are located in nice neighborhoods and only need minimal amounts of work.

That’s because just some minor touch-ups and cosmetic work such as painting and new carpets can go a long way when it comes to turning a nice profit on a home.

In short, look to purchase the ugliest house on the prettiest block. Don’t be scared off by houses that look and smell terrible. These are often easy — and cheap — fixes.

Happy house hunting!