What is a HUD foreclosures? HUD homes vary in price, location, and condition. The rules for buying HUD homes for sale are different for home buyers (HUD calls them Owner-Occupants) and investors. Consulting a local real estate agent can help you ensure you’re making a good investment. 1. Finding a Real Estate Agent.
HUD homes are also appealing because they can be purchased through an HUD-approved real estate agent, who can guide the buyer through the process. Many properties are only available for what is called the “priority period” to buyers who will use them as primary residences.
Your best option is to find a strong local agent or Realtor right here on Bigger Pockets to help you submit your bids. Anyone who is pre-qualified for a mortgage loan may offer to purchase a HUD home. The Miami real estate agent will work with you in preparing all pertinent paperwork in order to help you make your offer.
On the Internet, many web sites offer free foreclosure listings, including some dedicated to listings of HUD houses. A real estate agent bidding on a HUD property could effectively reduce his bid price by the amount of commission he may earn on the sale. The lender can file a claim with FHA for the balance due on the mortgage and then conveys title to HUD.
Property buyers should consider investing in HUD homes for sale due to several unique benefits. HUD might offer special incentives such as an allowance to upgrade the property, a moving expense allowance, or a bonus for closing the sale early. Before you send in your bid however, you have to avail the services of a HUD-approved real estate agent because they are the only ones who can make the transaction for you.