Buying HUD Home Foreclosures
By Thomas Straub
US Department of Housing and Urban Development, or, HUD home foreclosures are very attractive to investors and home buyers because the price of the home is automatically adjusted if the home requires repairs or renovations. For example, if a home will cost the buyer $15,000 to repair a property, then the HUD asking price will be adjusted downward to accommodate the investment the buyer has to make to get the work done on the property.
HUD does not actually fix the properties that it sells, rather, the buyer is responsible for making all the repairs and renovations needed. HUD home foreclosures are simply appraised and then sold at the current market price.
When a property is bought from HUD, the home foreclosure process is a little different than for other non-HUD home foreclosures. When the home owner can no longer make payments on the property, then the Federal Housing Administration, or, FHA who federally insures the loan, pays the lender the amount still owed on the property. This makes HUD the new owner of the foreclosed property.
If you are interested in buying any HUD foreclosures, then you can bid on them by working with a HUD approved real estate agent. The real estate agent will then show you the property. All bids must be submitted through the HUD approved real estate agent, and will be sealed and unopened until the end of the bidding period.
When the bidding period is over, all the sealed bids are opened, and usually the highest bid will get to purchase the property. If the original winner of the auction bidding does not complete the purchase within a specified time of usually 30 to 60 days, then the next highest bidder will then be offered a chance to buy the property.
When bidding on HUD foreclosures buyers must put up earnest money. HUD does not finance purchases, so all buyers must get their financing through a bank or other financial institution. A buyer should always make sure they have their financing secured before making a bid on a property. If a buyer makes a bid before they arrange their financing, and then they win the auction bidding, but becomes unable to pay for the property, they will lose their earnest money.
HUD does not actually fix the properties that it sells, rather, the buyer is responsible for making all the repairs and renovations needed. HUD home foreclosures are simply appraised and then sold at the current market price.
When a property is bought from HUD, the home foreclosure process is a little different than for other non-HUD home foreclosures. When the home owner can no longer make payments on the property, then the Federal Housing Administration, or, FHA who federally insures the loan, pays the lender the amount still owed on the property. This makes HUD the new owner of the foreclosed property.
If you are interested in buying any HUD foreclosures, then you can bid on them by working with a HUD approved real estate agent. The real estate agent will then show you the property. All bids must be submitted through the HUD approved real estate agent, and will be sealed and unopened until the end of the bidding period.
When the bidding period is over, all the sealed bids are opened, and usually the highest bid will get to purchase the property. If the original winner of the auction bidding does not complete the purchase within a specified time of usually 30 to 60 days, then the next highest bidder will then be offered a chance to buy the property.
When bidding on HUD foreclosures buyers must put up earnest money. HUD does not finance purchases, so all buyers must get their financing through a bank or other financial institution. A buyer should always make sure they have their financing secured before making a bid on a property. If a buyer makes a bid before they arrange their financing, and then they win the auction bidding, but becomes unable to pay for the property, they will lose their earnest money.
Tom Straub is the publisher of the site Stop-Foreclosure-Kit.US which contains videos and reports on how to avoid foreclosure and buying home foreclosures.
Article Source: http://EzineArticles.com/?expert=Thomas_Straub
But if you live in an expensive city like I do, New York City, it is highly UNLIKELY that you will find anything worth looking at. Creative real estate investing is a must in such a tight market as New York City. Looking for a second home in Florida? Yes, you will find many options. And one thing I like about HUD, they do an inspection and make the full report available online. So you have a basic idea as to what you are getting into, what needs to be repaired, and their repair estimates.
Next I will discuss alternatives which can be a LOT more attractive, but will also require teamwork. But, as always, one needs to have an open mind when doing creative real estate investing.
But if you live in an expensive city like I do, New York City, it is highly UNLIKELY that you will find anything worth looking at. Creative real estate investing is a must in such a tight market as New York City. Looking for a second home in Florida? Yes, you will find many options. And one thing I like about HUD, they do an inspection and make the full report available online. So you have a basic idea as to what you are getting into, what needs to be repaired, and their repair estimates.
Next I will discuss alternatives which can be a LOT more attractive, but will also require teamwork. But, as always, one needs to have an open mind when doing creative real estate investing.
