Have You Overlooked HUD Homes?
If you have always dreamed of owning a home, the Department of Housing and Urban Development can help you. As discussed earlier, if real estate agents can bid on and buy HUD homes at an unfair advantage to the home buyer and investor, then it stands to reason that many of the nicer properties are bought by these agents. HUD Homes are offered to the public on websites that are maintained by HUD approved companies.
HUD does not guarantee the condition of any property, FHA-insurable or not, nor whether it meets local codes or zoning requirements. In the case of HUD homes there are no negotiations, no haggling, or offer and counter-offers. If HUD receives a bid that is close to what they need out of the home, they may counter a buyer.
A HUD home is a 1-to-4 unit residential property acquired by HUD (Department of Housing and Urban Development) as a result of a foreclosure action on an FHA-insured mortgage. HUD usually accepts the highest bid, or the bid that brings them the highest net.
HUD Homes are initially offered to people who are buying the home as their primary residence. An owner occupant must live in the property as their primary residence for one year and may not purchase another HUD Home for two years. Any agent who is registered with HUD can show a HUD home and submit a bid for purchase.
If you have trouble contacting your local public housing agency, contact your local HUD field office for help. Both owner-occupiers and investors can purchase, and while securing these homes does require patience, some market savvy and a proficient real estate agent can go a long way.