How to Bid on a HUD Home

Right now there are thousands upon thousands of discount homes available nationwide. If you look closely you'll probably discover a few right in your own backyard. Here are Some reasons you should consider buying a HUD Home. Many HUD homes are are sold without a minimum bid. HUD pays your real estate agents commission. HUD pays your closing costs. Down payments are as low as 3%. And finally, you have the option of using an FHA insured loan to buy the home or using outside financing. If you are considering bidding on a HUD Home, here are the steps in the process, which is actually quite simple.

Difficulty: Moderate

Instructions

1. FIND AN AGENT
   
   Find a HUD approved real estate agent who will show you the HUD Homes in your area.

2. GET PRE-QUALIFIED
   
   Determine how much you can spend on your new home

3. FIND A HOME YOU LIKE
   
   Do homework on homes available in your area. Get an idea of what homes are selling for.

4. SUBMIT A BID THROUGH YOUR AGENT
   
   Your HUD approved agent will help you complete the bid form. HUD repo bids are sealed bids. They are only visible to HUD officials on the day of the auction. Auctions are held once or twice monthly in most cities.

5. SUBMIT A DEPOSIT WITH YOUR BID
   
   Include an earnst money deposit with your bid. Deposit amounts vary in each city. Deposits range from $500 to $2,000. Your HUD approved real estate agent will give you guidance on the amount.

6. WAIT FOR NOTIFICATION
   
   Successful bidders will be notified at the bid opening

7. IF SUCCESSFUL, CLOSE ON THE HOME
   
   Successful bidders are given 30 to 45 days to arrange financing and close on the house.

[greatgreat8]

on 6/19/2009 great tips, thanks

[sonni57]

on 5/12/2009 I've had to negotiate a few hud homes when in real estate these are great tips thanks for sharing.