Many people have asked me about HUD homes, so I thought it would be nice to provide some basic information about HUD homes and how the process works.
<strong>What is a HUD Home?</strong>
HUD homes are FHA backed homes that have been foreclosed upon due to default by the owners. They can be single family homes or a 1 to 4 unit residential property. These homes are usually NOT move-in ready. They will require that work be done on them and the listings usually state the known issues that need to be corrected. What is nice is that they will escrow the estimated amount + 10% that is required to make the repairs. However, in some cases, the homes are sold "AS-IS" at a hugely discounted price - great for the right real estate investor.
<strong>Who can buy a HUD Home?</strong>
Anyone that can qualify for a loan, or has cash available to purchase can buy a HUD home. When the bidding process starts, it is initially opened up for Owner Occupant purchases only. After a certain period (determined by HUD), if the property does't sell, it is then placed on the open market which allows for other buyers to place bids (such as real estate investors).
<strong>How do I find a HUD Home?</strong>
To get the most up to date list of available properties, you need to visit the <a href="http://hud1.towerauction.net/OH.htm" target="_NEW">NHMS website</a>. Some HUD houses are listed in the local MLS, but very few.What you need to know is that in order to bid on a HUD home, you must have a Realtor place the bid for you.
If you're in the market for a HUD home, or have found a HUD property you would like to place a bid on, please <a href="http://www.cbushomes.info/contact-me">Contact Me</a> so that we may complete the initial paperwork that is required prior to bidding on your home!
You can also visit the <a href="http://portal.hud.gov/portal/page/portal/HUD/topics/buying_a_home">Housing and Urban Development Site on buying a home</a> for more detailed information on HUD Homes and the process.