HUD homes for sale are FHA insured loans that have been foreclosed and HUD has taken possession of the HUD houses. I also have brought HUD foreclosures for myself to fix up and resell. The type of foreclosure, though, depends on the borrower’s mortgage loan. 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 presents a very favorable situation for buyers who want an easy deal in property acquisition. Finding a HUD-approved realtor to help you in finalizing the sale can be done either through your regular real estate agent’s office, if they offer such a service, or through HUD’s website as they offer a list of preapproved realtors.
Buyers also have many other misunderstandings about HUD properties, Stopa said. The laws around purchasing HUD homes puts investors at a disadvantage when it comes to the speed with which they can acquire such properties. If you are interested in these HUD properties, you will still need the services of an HUD-licensed real estate agent because they have a lot of inside information that will definitely help you make the right choice.
HUD homes are often viewed as being very desirable as far as price, even if they do need a few repairs, however, a sudden glut of HUD buyers may cause the pricing to rise dramatically. The earnest money requirements are $1,000 if the list price of the HUD home listing is over $50,000 and $500 if the list price is under $50,000.
Government sites do not offer HUD foreclosure listings. If you still want the property, you must submit a bid package containing a complete set of contracts to a HUD field office with your deposit of 5 percent. Real estate listings held by other brokerage firms are included in this site and detailed information about them includes the name of the listing brokers.