Pre-ApprovaL:YOUR 1st Step In Buying A HomeIn many markets across the country, the number of buyers searching for their dream homes outnumbers the number of homes for sale. This has led to
Buying A HUD Home
A HUD home is a residential property obtained by HUD as a result of a foreclosure on an FHA mortgage. So another name for it could be “FHA Foreclosures”. Once HUD acquires it, it becomes the owner and offers it for sale. Those types of properties are usually below market value and are great deals!
So who can buy a HUD home? Initially, most of HUD homes will be offered to owner occupant purchasers, so all of you owner occupant home buyers- you have a priority! And if it is not sold during the priority period, then it will be available to all buyers, including investors.
Buying a HUD home is different from buying another type of foreclosed property. HUD homes are sold exclusively online in an auction process called“offer period.” You may make an online offer during the offer period. At the end of the offer period, all offers are opened and considered to be received simultaneously. The highest acceptable net bid is then accepted, and the buyer’s agent is contacted.
What you probably don’t know is that if no one makes an offer for a HUD home within a certain amount of time, HUD lowers the price. The price of the HUD home continues to drop until an offer is made and accepted.
One thing that is unique to a purchase of a HUD home is that if you perform a home inspection during the transaction, HUD will not pay for the correction of any defects or repairs. If you are still interested in purchasing a HUD home that needs repairs, you can apply for an FHA 203(k) Rehabilitation Loan. This is very common with remodeling. The homebuyer usually has to obtain financing first to purchase the dwelling; additional financing to do the rehabilitation construction; and a permanent mortgage when the work is completed to pay off the interim loans with a permanent mortgage.
One last thing to remember during you home search is that only real estate agents who are registered with HUD may represent home buyers and investors in the purchase of HUD homes online.
Contact me for a list of current HUD homes on the market!
Lily Ovrutskiy uses her 10 years of experience to help her clients achieve their goals in the least amount of time and with the least amount of stress possible. Lily represent sellers and buyers of all levels who are looking to list and sell their homes for top dollar using first class technology based marketing programs specializing in Aurora, Centennial, Parker, Lone Tree, Highlands Ranch, Littleton, Lakewood and many other Denver surroundings. Contact Lily at 720-339-9663 or email [email protected] for more information.
Mike Conner is a full time REALTOR who has been making his client’s dreams a reality for over ten years. Based in Centennial, Colorado, Mike is the expert to help you with all your home buying and s....
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