The U.S. Department of Housing and Urban Development (HUD) HOME program is a housing block grant program used to preserve and create affordable housing for low-income households. That is the amount you can bid and HUD will net $88,000 with HUD paying $3,000 closing costs and 5% Buyer’s agent commissions. When a property is bought from HUD, the home foreclosure process is a little different than for other non-HUD home foreclosures. Banks notoriously sell foreclosed properties at prices often well below the market.
A real estate agent does not have to take special training to sell HUD home foreclosures. Schedule an inspection: Potential buyers are able to schedule inspections for properties they would like to place a bid on. Be sure to factor in the costs discussed in the earlier section.
This percentage could be from 13% to 50% or less depending how long the property remains in the Miami real estate market. Once the time has lapsed, the bids are evaluated and the highest bidder typically gets to buy the property. 9. Why Consider HUD Foreclosures – When comparing the process of Short Sales, Bank Owned Foreclosures and HUD Homes.
The HUD agent in my case was also totally useless when it came to information, turn around time, or even answering phone calls. Foreclosure real estate is wonderful for helping you enjoy more equity because most foreclosed properties are sold with built-in equity since they are sold below market value.
Submit your bid: When you find an eligible property to your liking, work with your agent to submit your bid as soon as possible. This site provides the public, brokers, potential owner-occupants, state and local governments and nonprofit organizations a centralized location to search the inventory of HUD properties for sale.