A home that has gone into mortgage default with a loan that is insured by the Federal Housing Administration (FHA) is referred to as a HUD Home. It’s also important to understand that the availability of HUD housing varies from location to location. HUD does prosecute investors who have been caught buying in the owner occupant period. On some aged assets, investors are getting HUD homes at 50 percent or less of the list price.
The following information is provided as an introduction to the process through which HUD homes can be purchased. The buyer is also encouraged to have a professional home inspection performed with the utilities activated, AFTER the contract has been accepted and signed by HUD.
While buying a HUD Home can save you a lot of money, there are some things to watch out for. With our service, you’ll be able to find all kinds of discount foreclosures, including homes available from HUD and FHA, just by searching for foreclosures in your area.
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.
In this article we’ll cover the basics of buying a HUD foreclosure home and some tips on getting the lowest price possible. This is why investors should always have their real estate agent mark yes” to the question on the HUD contract if they want their offer to be in backup position.