Many real estate agents question how to advertise HUD Homes for Sale and if it’s allowed by agents? HUD defines a one-to-four unit property as either a single-family, duplex, triplex or fourplex. A HUD Home is a one-to-four unit single-family residence, condominium or townhome that has been conveyed to HUD by the lender as a result of foreclosure when the borrower defaults on the FHA-insured loan.
Additionally, NAID-certified real estate agents (agents with name and address identification), can help buyers target the most attractive homes in an area. In some instances that process can include the possibility of the new owner assuming the existing FHA insured loan on the HUD home.
Perspective purchasers MUST be accompanied by a broker or agent when viewing any HUD home listed for sale. The owner defaulted on their HUD Insured loan and the house entered into foreclosure. When a HUD homes goes under contract, HUD stops the daily count for a home being on the market.
Since the new owner will be responsible for making any needed repairs, HUD strongly urges every potential homebuyer to get a professional inspection. So, instead of the property going back to the lender as in a normal foreclosure situation, it goes back to its owner” (which in this case is HUD) as the responsible party for all FHA insured loans.
Some HUD Homes were built just a few years ago, while others are 50+ years old. You need a licensed real estate broker listed with HUD to bid on FHA properties. Under GNND, qualified individuals can purchase HUD homes with as little as $100 down. It is also a felony for investors to make repairs to a HUD home before they buy it or to move anything onto the property before closing.