HUD homes for sale are the most sought after investment a home buyer or investor can find. When HUD housing is first put up for bid, only bidders who will live in the home can bid on it. In the listing of homes, you’ll see the designation Owner Occupant,” which indicates that the home is open for bids only by those who will occupy the property.
Whether you are looking for HUD homes for sale to add investment properties to your investment portfolio or looking for a home for your family, HUD will arrange to have a contractor present while you are viewing the property to give you an estimation of what needs to be done to get the property in functioning condition.
As such, HUD requires bidders who submit offers on the property during the first offering to sign a statement that they have not bought another HUD home in the previous twenty-four months of their offer and that they will occupy the home for at least twelve months.
Through various programs people can borrow money from banks that is insured by the FHA but when these people fail to remain current on their payments and default on their loans the homes will eventually be repossessed by the Department of Housing and Urban Development which then sells the property in order to recover its losses.
HUD will generally accept the highest bid, or the bid that brings them the highest will pay real estate agencies a commission of up to 6% for the sale of the home and offer special home purchase programs for teachers and full time law enforcement foreclosures are usually sold at below-market prices with great terms like low down payments and low interest rates.