Let’s begin with the basics.
How does HUD get a home to sell?
When a homeowner purchased a home with a HUD insured mortgage and does make their monthly mortgage payment the loan is foreclosed. HUD guarantees the loan meaning they pay the lender the balance of the loan and HUD becomes the property owner.
Once ownership has transferred HUD sells the properties at the current market value as quickly as possible by a bid process.
Who can purchase a HUD home?
HUD homes are first offered to buyers who will live in the single family home or in one of the units in a multi-unit complex. Buyers need to be able to qualify for a loan or pay cash. After a period of time if there are no acceptable offers from buyers who plan to live in the property then the bidding process is open to investors.
How do I find HUD homes for sale?
Click here to find homes in the state you are interested.
The Gorge Property Real Estate Team is licensed in Oregon and Washington as HUD-Registered Selling Brokers.
Tell me more about financing a HUD home.
To qualify for a mortgage a buyer need to meet with a lender to find out their options. Lenders look at the buyers credit history, funds for down payment, employment, and monthly bills among other things to determine what type of loan fits within the HUD guidelines.
How much money do I need to buy a HUD home?
The amount of cash you need to have on hand depends on the type of loan you qualify for and the price of the home you are buying.
Do I need to use a real estate agent?
There are many steps in the road to purchase a home. The guidance of a professional who is HUD certified makes the process easier by educating you in aspects of the important decisions you need to make.
HUD-Registered Selling Brokers are the only agents able to submit an offer for you.
Tell me how to make an offer.
HUD homes are sold by making an online bid. Each home has a NAID number that identifies that home in the HUD system. The HUD-Registered Selling Broker logs into the HUD web site and submits a bid.
What is the general condition of a HUD home?
Just like with other homes on the market some people take care of their homes better than others. Generally HUD homes are properties where the owners have had some hard times and maintenance is deferred.
Can I get a home inspection?
Certainly. As your real estate team I would advise a home inspection. An inspection allows you to see into the total condition of the home.
HUD does not pay for repairs and sells properties “As Is” without a warranty to condition. The listing price of the property should reflect the property in the current condition.
If HUD accepts my bid what are the next steps?
An experienced real estate broker is of great value in the next steps of the process. In the bid process you commit to paying an earnest money deposit. That money is due by check within 48 hours of HUD accepting your bid. The fully signed purchase contract and pre-qualification letter from your lender must be sent in with your deposit.
Upon receipt HUD gives you a settlement date, typically 45 days, in which you need to complete the loan process and the purchase of the property. Once HUD accepts your bid there are many steps in the loan process including the appraisal, employment verifications, lender approval, and document preparation.
For more detailed information click on these links:
Let the Gorge Property Real Estate Team help you buy a HUD home! We have years of experience and have been HUD-Registered Selling Brokers for over 10 years.
Contact Denise@GorgeProperty.com with any questions.