Things You'll Need:
- Home inspector before you buy
- Pre-Approval on a loan or cash (You need to have the money ready when you make an offer on a HUD home)
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Step 1
To find a HUD Foreclosure listings, you will need to visit the HUD website. Each state has different statutes and procedures. After you find a foreclosure listing you are interested in, contact a HUD approved real estate office to talk to a real estate agent.
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Step 2
Have a home inspector look at the home to see what repairs and upgrades are necessary. HUD Home foreclosures are listed at fair market value for the area but are marked down as necessary when repairs are needed. They are marked down because the Department of housing and Urban Development sells the house as-is and does not make the repairs before selling.
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Step 3
If you are interested in a home, you need to be approved for the loan, or have cash in hand. Offers will be thrown out if the money is not ready for the HUD foreclosure.
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Step 4
HUD homes are sold using a sealed bidding process. When you decide you want to buy the foreclosure, you make a sealed bid offer. After the initial offering period, the bids are opened and usually the highest bid is taken. Be aware of how many other people are bidding if possible, if you are the only one, try bidding very very low. Since it's a government program, all they care about is getting rid of the house.
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Step 5
Make sure you bid within six months, after that the homes are sold to non-profits and charities for practically free and you could lose out on a great deal to get into your first home.
