There are five buyer types that are eligible to purchase HUD Homes: Owner Occupants, Investors, Good Neighbor Next Door (GNND), Eligible Nonprofit organizations, and Approved Government Entities. These companies each have designated territories to which they manage the sale of each of these homes. Policy Development and Research (PD&R): This office is responsible for maintaining current information on housing needs, market conditions, and existing programs, as well as conducting research on priority housing and community development issues through the HUD USER Clearinghouse. That occupant has to live in the home for at least a year and cannot buy anymore HUD homes as an owner occupant in that first year. If the home requires less than $5,000 in repairs, it can qualify as an FHA-insured HUD property.
Buyers are very strongly encouraged to have homes inspected by a qualified home inspection company to satisfy themselves as to the condition of the property at the time of sale. Typically a HUD home is forclosed and consequently may be a bit or a lot of a fixer. There is nothing extraordinary about HUD homes other than the fact that the mortgage used to purchase it was insured by the FHA.
The length of the priority period varies: It’s 15 days for HUD REO properties marketed as ‘œInsured’ or ‘œInsured with Escrow’ (meaning financed with an FHA-insured mortgage), but only five days for uninsured homes. If HUD lowers the price on a property, they will review bids they have already received to see if they are now an acceptable amount after the price change. Unlike the procedure for single-family to fourplex properties, HUD likes to sell the multi-family properties directly through their Property Disposition Department in Washington, D.C.
You can find HUD properties by calling a local real estate agent or authorized HUD broker, looking in the newspaper for HUD property sales or by calling HUD directly. If you must have an extension due to your lender or other fault of the buyer, then HUD will charge you for an extension. I can submit the lowest price HUD will consider, on the same day status changes. HUD accepts the highest bid that provides them with their acceptable net proceeds. The upside of buying a HUD Home is that you can get an excellent deal via bidding on the HUDHomestore. BUYER/SELLING AGENTS, we have a detailed Powerpoint presentation on how YOU can sell HUD Homes.
The company which we are a contractor for, Sage Acquisitions, LLC , believes heavily in keeping agents all throughout Michigan knowledgeable on the necessary procedures and requirements for submitting offers on HUD Properties. Upon completion of this assignment, I plan to return to Colorado and build a net zero home…allowing myself and my family freedom from a utility grid tie and the politics that come with it.