The Basics of Buying Foreclosed HUD Homes
Posted on June 29th, 2011
There are an unusually large number of homes on the market due to foreclosure. However, some of those foreclosed homes are actually HUD homes, meaning they were purchased with a HUD loan–one that was insured by HUD FHA.
If you’re looking to buy a foreclosed HUD home, you’re in for a process that’s different from the standard home foreclosure purchase. Here is what you need to know HUD foreclosures.
HUD Foreclosed Homes Aren’t Necessarily Cheaper
While HUD foreclosed homes were obtained through the HUD program, they aren’t necessarily cheaper than other foreclosure properties. In actuality, they’re priced at fair market value for their location and may be adjusted downwards if in need of repairs.
Sold As-Is
HUD does not make repairs on foreclosures. You will be responsible for them all. So before you agree to purchase a home, it’s important to make sure you get it inspected. This could help you determine a bidding price in case you’ll need to make repairs.
Meant for Occupants
HUD homes are available for individuals who want to occupy the home. However, it’s good to know that if a home is not purchased by a prospective occupant, an investor can make the purchase.
Easy to Find and Bid On
HUD listings are easy to find by visiting the HUD offices or its website. If you want to purchase through an agent, they must bid during HUD’s Offer Period. If your bid is accepted, you will be given a HUD settlement date (30-60 days) to accept the contract.
HUD pays real estate agencies a commission of up to six percent for the sale of the home; however, this must be written into your contract. Also, it’s good to know that HUD doesn’t finance homes.
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- Is That Asking Price Even Close to Reality?
- Split Housing Market: Ugly vs Pretty Homes
- Tenants’ Rights in Foreclosed Properties
- Short Sales – Not a Short Process, But Better
Tags: Homes, Hud Homes
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