Information on HUD Foreclosure Homes
The U.S. Department of Housing and Urban Development (HUD) was established to increase home ownership and support the development of local communities. HUD homes are typically FHA foreclosures. Housing is generally affordable and available for purchase by just about anyone.
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Who Sells HUD Foreclosures?
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HUD homes are available through the Multiple Listing Service (MLS) and through HUD's website. According to hud.gov, "Any real estate broker registered with HUD may submit an offer and contract to purchase" on behalf of the buyer. HUD has "real estate professionals that represent their interests" as well.
How to Purchase HUD Foreclosures
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Once you locate the HUD home you would like to buy, you must submit a bid to HUD which includes the amount you are offering to purchase the home. HUD then considers all offers made during an allotted time period and accepts the offer of the highest bidder.
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Financing Options
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HUD is not a finance company and does not provide loans for potential buyers. According to Realtytrac.com, buyers can possibly assume the existing FHA loan to purchase the HUD property. Owners are often required to qualify for and obtain new financing for the homes.
Special Programs
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In an effort to revitalize underprivileged neighborhoods, HUD has a "Good Neighbor Next Door" program that offers special discounts and incentives on homes purchased by buyers that have special occupations such as teachers, firefighters and law enforcement officers.
Renovations/Repairs
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HUD homes are sold on an as-is basis and are not subject to any renovations or repairs. According to Realtytrac.com, management companies contracted with HUD maintain all of their properties. HUD recommends that you get a home inspection prior to close of escrow.
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References
- Photo Credit Image by Flickr.com, courtesy of Daniel Rothamel
