What is a HUD Home, and Can I Buy One??

What is a HUD Home, and Can I Buy One??

hud pic HUD stands for the United States Department of Housing and Urban Development. When an FHA Loan goes into foreclosure, it goes back to them to sell and recover the loss on the claim. They pay off the amount, and put it up for sale. Sometimes it is sold below market value, it depends on what the pay-off was. Anyone can buy a HUD owned home, however, there are some restrictions.

Your Broker must be currently registered as a HUD Certified Broker with a NAID number in order to successfully submit an offer. When a home is listed through HUD, no offers are reviewed or considered until the 10th day on the market. At that time, all bids are submitted electronically, and the system considers them all received at the same time. HUD would prefer an owner-occupant buyer. They will only accept such offers for the first 30 days. After that period, they will open the home to non-occupant buyers, or investors.

There is a definite process to buying a HUD Home…you will want to make sure and work with a Qualified Real Estate Agent if doing so! Here is a list of MUST-HAVE’S on Pre-Approvals for HUD bids.

  • Must say “Pre-Approval” somewhere on it
  • Lender’s Company Name
  • Current date, as well as 90 day expiration date
  • Selling Agent’s Name
  • Buyer’s Name
  • Property Address
  • Sale Price
  • Down Payment Amount
  • Loan Program Name
  • Pre-Qualification breakdown
  • Credit Scores
  • Lender Contract Information
  • Lender’s Signature (in BLUE ink!)

**HUD will pay up to 3% of the closing costs, but it must be stated on-line 5 of the contract, or they will not pay title, escrow, transfer tax, or anything else!  That is just one tip we will give you for FREE!  We would love to help you buy your next home, whether it is a HUD owned home or not!  We have worked with many types of buyer’s, and are ready to get started with you today!  Call to set up a FREE Market Analysis of your Home’s Current Value, or get set up on a Custom Search for upcoming homes on the market!

Lori Mode & Bruce Durham | Keller Williams Realty, Elk Grove |  916-405-5765 DRE#00935148 | 00875356

You can search all homes for sale on our website, www.FindaHomeinElkGrove.com

Get Your Home Value NOW! Elk Grove Home Values
Use our quick and easy site to get an instant value for your home! For a more accurate value, or to talk about getting your home on the market, give us a call at 916-405-5737 today!
Facebook Pinterest Email Twitter Linkedin