How to Buy a HUD Home in Massachusetts

Massachusetts home buyers can seek cheap deals on HUD homes.

The United States Department of Housing and Urban Development (HUD) buys and sells many foreclosed homes in Massachusetts that were insured by the Federal Housing Administration (FHA). HUD puts the homes up for sale to make back the money lost by insuring the foreclosed mortgage. Investors or aspiring home owners can use online resources to find Massachusetts HUD homes. The buyers can then arrange financing and use a real estate broker to place bids on and buy HUD homes throughout Massachusetts.

Things You'll Need

• Internet access
• Financial documents

Instructions

1. Click on the "Massachusetts" link on the "HUD Homes" page of the HUD website. HUD uses private management companies to list and sell HUD homes. Click on the "Massachusetts" link to find the current Massachusetts HUD home listings. As of May 2010, CitySide Management Corporation manages HUD properties for sale in Massachusetts.

2. Use CitySide Management Corporation's "Massachusetts" page to search for Massachusetts HUD homes for sale. You may search by city, county or price range. Note the property case number of homes when viewing search listings if you wish to find individual properties later by the case number. Make a list of HUD properties you would like to bid on and purchase.

3. Click on the "Find a HUD Registered Agent" on the same "Massachusetts" page to find a HUD agent for bidding. You must find and use a HUD registered broker to buy HUD homes. Arrange a home inspection with the HUD broker. Note that HUD sells homes on an "as is" basis. You need to look at the condition of a home to determine the amount of your bid. You may also choose to hire a local home appraiser to place a value on the home.

4. Negotiate with fellow investors or lending institutions to raise funds for buying the homes. Prepare a bank statement or other proof of sufficient assets or loan-approval documents for your real estate broker. Lenders will preliminarily approve you for a loan if you qualify.

5. Have your real estate broker place bids on the properties you would like to buy. The broker will handle all of the documents in the event that you place a winning bid on a HUD house. Make sure you keep in contact with the broker to provide any additional information the broker may need to process the HUD home purchase. You will also need to speak to the lender to finalize the loan in the event you have a loan to purchase a HUD property.

Tips & Warnings

• You may also hire a title searcher to inspect the home title before bidding on a HUD home. A title inspection ensures that no outstanding liens or other potential problems exist in the house's chain of title.

• You may file the deed provided by HUD to document your ownership interest in a HUD home. In Massachusetts, deed holders record land deeds at the local registry of deeds. As of 2010, the fee is about $125 at each local registry to record a deed. Open the "Registry of Deeds" page on the Massachusetts Secretary of the Commonwealth website (see Resources). Use the link for the local registry or deeds where the HUD home is located to get contact information for the local registry.

References

• HUD: HUD Homes
• CitySide Management Corporation: Massachusetts

Resources

• Massachusetts Secretary of the Commonwealth: Registry of Deeds