Investors can find great financial opportunities in researching and purchasing homes that have been foreclosed upon. Or, the lender may “cash in” on its FHA insurance policy and turn the property over to HUD. As soon as you have won a bid you have 24 Hours to have the signed sales contract and all paperwork turned into the HUD office. In fact, real estate officials involved with HUD sales emphasize that HUD home buyers should be acutely aware of the many problems that could surface with a HUD home.
Only a real estate agent representing you can make an offer on a HUD home. The Federal Government has several options for financing under which the HUD (Housing Urban Department) issues home loans to individuals for their property. HUD Homes have become viable investments since these homes can be found 30-50% below market value.
Everybody knows about FHA mortgages, but many people don’t realize that the FHA is not actually a lender. The properties which are foreclosed are put on auction sale and in open market on sale for recovering the debt. Investors may bid on and purchase multiple properties, provided they can obtain adequate financing or pay cash.
It’s possible for Investors to make offers on multiple HUD homes every day of the week. Cash buyers are required to provide proof of funds for at least the amount of the purchase price. Buying homes through a HUD-approved real estate agent provides you with a simple buying process.
HUD engages a licensed real estate appraiser in determining the fair market value of a house. Home inspections for HUD homes – The Federal Housing Administration does not warrant or guarantee the condition of its properties and will not pay for the correction of defects or repairs.