A HUD Home is an FHA home loan that has gone bad. HUD and FHA are Government Agencies. The original home buyers bought the home using an FHA-insured loan. When they couldn't pay their FHA-insured mortgage, the home was foreclosed on. It now belongs to HUD (Housing and Urban Development). HUD doesn't want the home so it contracts with Real Estate Agencies all over the U.S. to sell these homes for them.
Buying a HUD home is similar to buying a Bank-owned foreclosure but there are a few differences. First of all, certified funds of $1,000 are always required. You must use an authorized HUD Realtor through the entire transaction. I am a trained and qualified HUD Real Estate Agent so you can use me if you choose. We are provided with a master key that works in all HUD homes so you can inspect the home anytime. HUD homes are always vacant.
Since a HUD home is an FHA home, HUD will provide the Buyer (you) with some good advice and recommendations that you should carefully consider such as having a qualified Home Inspector check out the house, having it inspected for any wood infestation by termites, etc.
Buying a HUD home involves a "sealed bid" auction type of procedure. When a HUD home first comes on the market, only owner/occupants can bid on the house for the first 10 days. What this means to you is that investors can't buy up the homes before people who want to actually live there have a chance to bid.
The first 10 days is important in another way---All offers presented during this 10 day period, whether presented on day one, day two or day ten, are all presented to HUD on day eleven, all at the same time. After that, if HUD hasn't accepted anyone's offer, offers are reviewed on a daily basis but now Investors can bid, too.
If you are interested in purchasing a HUD home, let us know----We can help you from start to finish.
rontmay@bellsouth.net |