Contact us anytime at (425) 466-9671 or at [email protected] for a current Free HUD Homes Photo Listing Report for your area. A. A HUD home is a 1 to 4 unit residential property acquired by HUD as a result of a foreclosure action on an FHA-insured mortgage. When you buy a foreclosed HUD property at a deep discount, that savings represents an immediate return on your investment. Usually Neighborhoods or tracts of homes for lower incomes and those starting out. The initial listing price is determined by HUD to be an estimate of the property’s current fair market value (FMV).
So, people looking to live in the home they’re buying as a primary residence are given a short priority period to place bids on HUD homes. HUD becomes the property owner and offers it for sale to recover the loss on the foreclosure claim. Be sure to avail yourself to all of the background information on the home’s history, including sales history, recent tax assessments, and the average sale price of comparable homes in the neighborhood. HUD foreclosures are sold using a bidding process, and you must hire a licensed real estate agent to assist you with process.
HUD pays real estate brokers an industry-standard commission for facilitating the sale of its homes. However, the buyer of a HUD home foreclosure is not required to use an FHA-insured mortgage to purchase the home. With our listings of HUD homes for sale in the Dallas County area, in no-time-at-all, you will be realizing your new dreams. Once a home reverts back to HUD, they will conduct their own appraisal and list the property for sale on the HUD Homestore website and the local MLS (be sure to ask us for the MLS listing sheet which typically has more information than what’s on their website).
Extended (up to 180 days or open-ended): Homes worth more than $25,000 dollars remain in what becomes an open-ended Extended listing period. Keep in mind that HUD homes can be veritable gold mines for investors, who see the enormous profit potential in renovating and flipping a property, or even renting it out. When the property is foreclosed on, HUD eliminates the existing mortgage and any liens, then lists it for sale.
These HUD Homes for sale are not exclusively for low-income buyers, but most HUD Homes for sale are regarded as affordable for low to moderate-income purchasers within the market areas where they are located. HUD does have a program available called the 203(K) loan program, which loans money to buyers of HUD homes in order to make needed repairs. This requirement may be in conflict with HUD’s policy to sell homes as-is” except for preservation and protection of the home.