I am a Real Estate Agent and HUD Home specialist based out of Norman, Oklahoma and serving the entire metro area including Moore, and Oklahoma City. HUD has their own sales contract, addendum and disclosures, they will require a pre-qualification letter or proof of funds letter if you are paying cash and your earnest money must be sent with the package. To get paid, the selling agent must remember to insert wording in the contract to confirm that HUD will pay a commission. If your bid is not acceptable and no other acceptable bids have been placed you may re-bid or raise your bid until you find a purchase price that HUD will accept. Where do HUD Homes come from: When a borrower with an FHA mortgage defaults and ultimately is foreclosed upon.
HUD homes are sold as-is The new owner is responsible for all repairs and improvements. If the purchaser can qualify for a loan (with certain restrictions) or has the cash then they may buy a HUD Home. Approved Government Entities can bid on homes in lottery, exclusive, and extended phases provided they are in approved purchase areas. The homes are owned by HUD and first offered only to full-time educators and emergency responders who serve these areas.
In addition, HUD will pay up to 3% for standard closing cost items (excluding the closing agent fee which is paid for separately). It does not hurt to mark this box as you are under no obligation to continue with the contract if HUD accepts your bid. Am finding HUD is intentionally NOT disclosing important issues that affect the home’s condition. Any office can get an NAID, but it can take up to 6 weeks to get an NAID number from HUD. If you’re considering purchasing a HUD home, but you’re not all that familiar with the HUD program, you’re not alone.
HUD claims to use current appraisals to establish each home’s value according to age, condition, size, location, and lot size. HUD becomes the owner and offers the house for sale to recover the loss on the foreclosure claim. It’s critical to recognize that the list price for a HUD Home is almost never the price you’ll pay. Hid hones are government insured homes tha hud acquired the tittle to when the mortgage went into foreclosure because hud insures the mortgage against foreclosure.
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. This is rare, as usually HUD homes are priced low enough that an appraisal value is not an issue. HUD has assigned the responsibility to maintain and sell the homes to Management and Marketing (M&M) Contractors. HUD may return half of an investors earnest money if their loan is denied, but remember it is very difficult for an investor to get their earnest money back from HUD if they cancel the contract.