What Is a HUD Foreclosure?
When someone with an FHA-insured mortgage cannot meet the payments required, the lender forecloses on the home. HUD pays the lender what is owed, and HUD takes ownership of the home. Then it is sold at current appraised value as quickly as possible. These homes are not exclusively for low-income buyers, but most are affordable for low to moderate-income purchasers.
All properties that are for sale are currently listed on HUD's Website and in our local Multiple Listing Service . If the property you are looking at is not listed in either of these locations, then it is not currently for sale. It may have already been sold or may be listed in the coming weeks. Although we do not know the exact date when a property may be listed for bids, your Realtor will be happy to check the status for you.
Do HUD Homes Come With A Warranty?
HUD homes are sold “AS IS”, generally that means that HUD will not make repairs except in specific cases to eliminate a major safety or health issues. Any known defects in the condition of the home can be found on the website under property condition, and these issues are reflected in the purchase price.
What Do I Need To Know When Purchasing a HUD Home?
HUD homes are initially offered on a priority basis to owner occupant purchasers (people who are buying the home as their primary residence). Following the priority period, unsold properties are generally available to all buyers, including investors.
How Do I Place A Bid?
Only your real estate agent or broker can place a bid for you through an internet bidding system. If your bid is the highest net acceptable to HUD, subject to certain restrictions, your real estate agent must send in the completed contract within 48 hours. Only a correct contract, signed by a HUD official and returned to your agent constitutes a sale. You are then required to close the sale within a set number of days, usually 45 to 60 days. Until the sale is closed, you may not do any work or use the home in anyway, since you do not own it.
Contact us for more information about purchasing a Hud home.