In today’s housing market HUD foreclosures are becoming a larger part of the market. The process of buying a HUD home is considerable more different than buying from a homeowner. The reason you may be considering buying a HUD foreclosure is you are looking for a bargain. They can certainly be purchased at a bargain price if you know how to buy HUD home.
First a little information on what are HUD homes. A HUD foreclosure home is a home that had a mortgage that was insured by Federal Housing Administration (FHA) and it was foreclosed. HUD has taken possession and title to the home and put it on the market through selected Management and Marketing (M&M) Contractors and real estate agents throughout the country.
I am going to discuss three things you need to know on how to buy HUD home, but these are just the basics on buying HUD homes. You can get more information on how to buy HUD homes on my website.
Three Things You Need To Know On How To Buy HUD Home:
1. It Is An Auction!
Basically buying HUD homes is an auction. You can only make a bid online and you have to use a real estate agent. You just can’t submit an offer to HUD like you do when buying a home from a homeowner.
2. You Are Buying The HUD Home in “As-Is Condition”.
This is an important point of information. That doesn’t mean you can’t have the property inspected, it means HUD will not do any repairs. On most properties HUD will have a “Property Condition Report” which is similar to an inspection. HUD encourages you not to rely on the “Property Condition Report” but have your inspection done.
3. Get An Experienced Real Estate Agent!
As I mentioned above, you can only make a bid on a HUD home for sale through a real estate agent. It is very important to find a real estate agent with experience in buying HUD homes. An inexperienced agent can cost you thousands of dollars if they don’t know how to buy HUD home. Some agents don’t keep up on the incentives and the changes in the process in your state. Get an experienced real estate agent!
You can benefit from all of the HUD foreclosures on the market. Whether you are a home buyer or an investor now is the time to consider buying a HUD home but only if you know how to buy HUD Home!
P.S. This article is only small part of the information you can find on my website The HUD Home Expert. You will find more detailed information on the buying HUD homes process and how buying a HUD home can be very profitable to you whether as a home buyer or an investor.