Foreclosed Homes For sale
Search for real estate foreclosures in your area and get property details, photos, location map and contact information.
What is a "HUD Home"?
Homes acquired by the U.S. Department of Housing
and Urban Development are "HUD homes". They include single family
residences, townhouses, condominiums and other types of residential
properties.
When a homeowner cannot meet the payments of a HUD
insured mortgage, the home gets foreclosed by the mortgage lender. The
mortgage lender then transfers ownership of the home to HUD and collects
the amount owed to it. HUD will then offer the home for sale at market
value with the intent to sell as quickly as possible.
HUD homes attract a wide range of
potential buyers, including investors, teachers, police officers and home
buyers. Investors are generally bargain hunters looking for a property
that can be bought, fixed up and resold at a higher price. Teachers and
police officers can purchase HUD homes at 50% of the listed price. Other
home buyers are motivated in homes for sale at below market value, which
allows them to acquire a larger home than they could normally afford to
purchase.
Who Can Buy a "HUD Home"?
Anyone can buy a HUD home, if pre-approved for a mortgage or have a
verifiable amount of cash for the purchase. Most HUD homes are affordable
to low and moderate income Americans.
An owner-occupant, who intends to buy a HUD home as his or her primary
residence, usually has priority over other buyers. However, this priority
expires after a period of time and the real estate becomes available to
other qualified buyers.
Employees and relatives of U.S. Department of
Housing and Urban Development employees are eligible to buy a HUD home.
To qualify for a HUD-owned single family home, they must receive written
approval from the Director of HUD's Office of Single Family Asset
Management. Paragraph 10-29C of Handbook 4310.5, REV-2, Property
Disposition Handbook-One to Four Family Properties, details the exact
requirements to purchase a HUD-owned single family property.
How to Buy a "HUD Home"?
HUD homes are for sale at market value and can
only be bought through a real estate agent approved by the U.S. Department
of Housing and Urban Development. Approved agents can submit bids any day
of the week, including weekends and holidays. All submitted bids are
reviewed within a short delay and generally, the highest net bid is
accepted. If there is no acceptable bid, the home becomes open to new
bidding until sold.
If a bid is accepted, your real estate agent is
notified usually within 48 hours. Settlement is usually within 30-60
days, during which time financing is arranged and the sale is closed. If
you do not close by the settlement date, your earnest money deposit is
forfeited or you have to pay for an extension of your sales contract.
Since HUD homes are sold on an “as-is” basis, a
professional home inspection before submitting a bid is recommended. HUD
will not pay for any needed repairs or corrections for any defects found.
Keep in mind that repairs, replacement and/or renovations can add
substantially to the cost of a purchased home.
The selling agent's commission is paid by HUD, but
only if you make this a condition of your offer.
How to secure a loan to purchase a "HUD Home"?
The U.S. Department of Housing and Urban Development does not provide home loans directly. However, HUD has
several mortgage insurance programs, including:
- HUD's FHA Loans
- HUD-Insured Loans for Rehabs
- HUD-Insured Loans for Special Credit Risks
- HUD-Insured Energy Efficient Loans
- HUD-Insured Loans for Condominiums
- HUD-Insured Loans for Disaster Victims
- HUD-Insured Reverse Mortgages for Elderly Homeowners
You can contact a
HUD approved lender, who will walk you through the loan process and secure the necessary loan for you.
Click here to find a HUD foreclosed home.
