These days HUD foreclosures are everywhere. A listing of Houston homes in pre-foreclosure may prove well worth its price, because it will direct you to highly motivated sellers who want to avoid having foreclosures on their credit histories. HUD Homes are sold as-is and buyers need to be diligent when preparing their offers.
Step 2. Finding a house – HUD offers a weekly list of available homes for sale. Another way is to allow a HUD-approved real estate agent to help you find properties being sold on the market just like any other property. HUD notes on its website that buyers interested in properties that need renovation should apply for what is called a 203(k) renovation mortgage through the Federal Housing Administration.
These agents with many years of experience in handling foreclosure properties will be able to guide you from filling the application till the completion of the loan process. If it’s new on the market, you probably don’t want to come in too low on your offer price, unless you’re only interested in the property at a certain price point.
This program allows buyers to purchase a HUD-owned home to resell to low-income families and first-time homebuyers. So not only are these homes at great prices, but the lenders are obligated to make sure the properties are going to be insured under FHA. The Housing and Urban Development has a program for evacuees displaced by hurricane Katrina, Rita or Wilma.
HUD sells these homes, also known as HUD home foreclosures all over the country through approved brokers who often times advertise in the local newspaper that they are approved to sell these homes. Approved Nonprofit Organizations can bid on homes in lottery, exclusive, and extended phases provided the properties are located in approved purchase areas.