What is a HUD Home?
A HUD home is a 1
to 4 unit residential property acquired by HUD as a result of a
foreclosure action on an FHA-insured mortgage. HUD becomes the
property owner and offers it for sale to recover the loss on the
foreclosure claim.
Who can
buy a HUD Home?
Almost anyone. If
you have the cash or can qualify for a loan (subject to certain
restrictions) you may buy a HUD Home. HUD Homes are initially
offered to owner-occupant purchasers (people who are buying the
home as their primary residence). Following the priority period
for owner occupants, unsold properties are available to all
buyers, including investors.
If you are an evacuee displaced by Hurricane Katrina, Rita or
Wilma, HUD could sell a HUD home at a discount to you.
How are
HUD Homes sold?
All properties
available for purchase by the public are offered for sale at
Internet listing sites maintained by management companies under
contract to HUD. Any real estate broker registered with HUD may
submit an offer and contract to purchase on your behalf. HUD
pays the real estate broker's commission, if included in the
contract.
Are
there any special programs?
Properties in
designated areas are available at a reduced sales price to law
enforcement officers, teachers, firefighters, emergency medical
technicians, nonprofits and local governments.
Law
enforcement officers, pre-Kindergarten through 12th grade
teachers and firefighters/emergency medical technicians can
contribute to community revitalization while becoming homeowners
through HUD's Good Neighbor Next Door Sales Program. HUD offers
a substantial incentive in the form of a discount of 50% from
the list price of the home. In return you must commit to live in
the property for 36 months as your sole residence.
Should I
get a home inspection?
HUD encourages you
to get an inspection after your offer is accepted. All HUD Homes
are sold AS-IS, without warranty. HUD will not make repairs nor
pay to correct any problems.
What
about financing?
Although HUD does
not offer financing directly, some HUD homes qualify for
FHA-insured loans. Shop around for a lender to find the best
loan terms. Find out how an FHA loan can help you.
How do go about
buying a HUD home?
Check out the
listings of HUD homes in your area (see the links just below).
If you think you want to buy a HUD home, just contact me (only a
real estate professional can be authorized to sell HUD homes),
and I'll be happy to submit a bid for you.
North
Carolina homes
South
Carolina homes
