When a HUD Home becomes available for sale, it is listed on HUD Home Store (and usually on the Multiple Listing Service). HUD Homes are initially offered to owner-occupant purchasers (people who are buying the home as their primary residence). Yes, you can use any lender, however, because the HUD purchase process is so much different than a normal home purchase, I would recommend that you use a local lender that is familiar with the HUD purchase process (this is important!). HUD homes have an exclusive listing period, at which time any owner occupants can submit bids for the property.
In addition to offering America’s largest and most accurate searchable database of foreclosed properties, provides you with helpful links and resources to help you learn everything you need to know about the foreclosure process and buying a HUD home. A HUD property is a single-family, Duplex, or Fourplex foreclosure that has been taken over by HUD (Housing and Urban Development) as a result of a deficiency of the homeowner with an FHA mortgage. Whether you’re buying a live-in or investment property, you’re buying smarter when you buy government houses for sale. They are paid by HUD accordingly for document preparation and closing services.
The lender will file a claim against FHA, as they were the ones who insured the loan and as a result HUD will take title to the property and disperse it through its Asset Management team. You may call the Listing Broker nearest you at 540-322-4500 for assistance with any part of the HUD Homes for sale process. Owner-occupants enjoy purchasing HUD homes because they are not competing with cash investors.
So, people looking to live in the home they’re buying as a primary residence are given a short priority period to place bids on HUD homes. HUD becomes the property owner and offers it for sale to recover the loss on the foreclosure claim. Be sure to avail yourself to all of the background information on the home’s history, including sales history, recent tax assessments, and the average sale price of comparable homes in the neighborhood. HUD foreclosures are sold using a bidding process, and you must hire a licensed real estate agent to assist you with process.
The Forfeiture of Earnest Money Deposit” document clearly states that if an individual buyer submits a contract to purchase a HUD home and does not perform, the 5 percent deposit will be retained by HUD on a non-refundable basis. If you’re looking for a great deal on a single-family or multi-family home for sale in San Antonio, HUD homes are a great place to begin your search. It is not until after HUD has exhausted all of those offers that it will even consider offers from other interested parties such as real estate investors.