Many prospective buyers are unaware of the selection of homes available through the US Department of Housing and Urban Development (HUD).
Buying a Foreclosed HUD Home
Acquired by HUD as a result of a foreclosure, available for purchase in all areas, including some of the most desirable master plans and communities, and include single family and multifamily residential properties.
In order to recover the loss on an FHA foreclosure, HUD becomes the property owner and the puts up the foreclosed home for sale. HUD homes are appraised and then priced at fair market value based on the neighborhood. A HUD home in need of repairs is adjusted downwards to reflect the investment the new owner will need to invest in order to improve the home.
Did you know almost anyone can qualify for mortgages for foreclosed HUD homes? HUD homes are sold through a bidding process that puts investors in line after intended owner-occupants. Hence buying HUD foreclosure is quite different than purchasing a traditional home. Some foreclosed houses owned by HUD are available at a reduced sales price to public employees such as: police officers, teachers, firefighters, and emergency medical technicians.
Since HUD homes in foreclosure have already gone through the entire foreclosure process, almost anyone can qualify to purchase one. As long as they either have the cash in hand or can qualify for a loan, the HUD home should be available to anyone who can finance the purchase. Available HUD homes are listed on various websites. If you find a HUD home online that you want to buy, M and M Realty Group can submit an online bid for you. If HUD finds your bid acceptable, your real estate agent will be notified, usually within 72 hours.
Note: Earnest Money Policies and all other contract requirements will remain the same; these incentives do not apply with any other discount programs HUD endorses. "Full Price Offers" refers to the current list price. If the purchase price is greater than the appraised value, the purchaser will be responsible for the difference between the overbid amount to be paid in cash at closing. Any previous guidance to these terms ended effective October 3, 2008. For further information please refer to Mortgagee Letter 2000-27