You have found your dream home and it is a HUD foreclosures. A HUD owned home is a home that was owned by someone with an FHA loan. HUD stands for Housing of Urban Development. You must have a real estate agent to bid on a HUD home, your realtor will be able to place the bid on your behalf. Bids are accepted during a given time period, after which the bidding is closed and all offers are opened and examined.
Once the Offer Period expires, the department will then choose the winning bidder. FHA 203K loans are the most popular financing used to purchase HUD homes. 3 Options Realty has a team of agents prepared to help you navigate your way through the process of purchasing a bank foreclosure.
Purchasers may be required to have a property re-winterized after the home inspection has been completed depending on the time of year. Besides getting a good deal on the price of HUD properties, they come with several other great b benefits. A HUD home simply means it is a home that went into foreclosure on an FHA loan.
The rules for buying HUD homes for sale are different for home buyers (HUD calls them Owner-Occupants) and investors. You need to locate an experienced real estate agent in buying HUD houses. For this reason, Wilmoth Group offers a referral program to brokers who do not have a NAID number but do have a client wishing to make an offer on a HUD home.
After that 15 day period, if no offer has been submitted, HUD opens up an extended bidding period to investors. Don’t bid on those if you plan on using an FHA loan. If you are considering purchasing a HUD home, or if you are a Realtor representing a buyer of any kind, you need to know about the special HUD programs.