You may also want to check out Fannie Mae's foreclosure website (homepath.com). If you decide you want to buy the house as a primary residence, you can also buy any house you want. You just won't qualify for first time owner down payment assistance programs.
You may also want to look into pulling equity (a small amount) out of your house (about $20,000) and pay cash for a house on the court house steps. Sometimes, you can find houses worth $50,000 for $20,000. You won't have to deal with all the mortage financing and fees. Ask a Realtor to go with you to learn how to bid etc.
By the way, your home is not earning money for you while it's paid off. Contrary to what the radio and TV is telling you, the money tied up in your home could be worth millions in a short period of time. If you have any questions about how to leverage your home for a safe retirement income, let me know.