You have found your dream home and it is a HUD foreclosures. This was a good thing for the entire real estate market. They are responsible for the upkeep of the property, and the required documentation associated with marketing and selling the homes according to HUD policies and guidelines set forth in the contract with the federal government.
There’s no better value on the real estate market than a foreclosure property, so try a search in your area today. Believe it or not, most real estate agents aren’t very familiar with HUD foreclosure homes. Luckily, an FHA 203k loan will finance the purchase and renovation of a home.
Owned by the U.S. Department of Housing and Urban Development (HUD) , a HUD home is a type of residential foreclosure. 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.
To be considered an owner-occupant, you must not have purchased a HUD property as a primary residence within the past two (2) years. Normally, the HUD foreclosure listings are available full of information like specific features and some even have pictures online that you can use to visualize the property.
When the property was foreclosed on, the lender files a claim for the balance due on the mortgage. HUD restricts the sale of some properties to owner occupantâ€ only. HUD Homes vary in price, location, and condition. But, if the HUD house has been on the market 3 or 4 months then a low ball offer might work.