Distressed properties or sales usually mean foreclosure or short sale homes. HUD homes are sold through an auction process; once the deadline is past and bids are in, HUD reviews its options. When HUD homes are first listed there is a bid period for owner occupants, non-profits or government agencies. Every bit of information that I was handed down by multiple sources closest to HUD turned out to be unequivocally true. However, this template is used by EVERY asset company managing and selling HUD homes.
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. During this 30 minute session, we can help you determine the best way to get started investing in real estate—whether through HUD homes specifically or through any number of the methods I practice and teach! HUD homes are appraised, then priced at what is supposed to be fair market value for their location.
As a HUD Local Listing Broker we hold various monthly outreaches and provide useful resources for agents, lenders, owner occupants and investors usually in our Holland Offices. When HUD housing is first put up for bid, only bidders who will live in the home can bid on it. In the listing of homes, you’ll see the designation Owner Occupant,” which indicates that the home is open for bids only by those who will occupy the property. When HUD does these inspections, many times the utilities are not on and it is always best for a buyer to have their own inspection completed. HUD homes are federal property and it is a felony to make any alterations before you own the home.
HUD Homes make for a great investment whether you are a first-time homebuyer or seasoned investor. For minor repairs, which are specified in the HUD listing’s Property Condition Summary (PCS) is Insured with Escrow. Each one, once HUD takes it over, is assigned a field service manager” who keeps a watchful eye on the home to make sure it’s secure and provides maintenance while the home is unoccupied. I’ve bought five HUD Homes as real estate investments and the fifth one was just this week. I tour Northern Virginia HUD homes on a regular basis and many of the homes are in nice condition, not perfect but they are priced competitively for the neighborhoods where they are located.
I have bid & won more HUD homes for my investors than I can count, and I use a strategy that I have been hoarding all to myself for several years. There is definitely an art and science to bidding on these foreclosures, and I’ve seen homeowners bid way too much for a HUD Home due to inexperience. Generally advertised under the heading, New Listings,” HUD wants the buyers of these properties to actually reside at that property for at least one year. HUD does require the social security, tax id or EIN number for the purchaser to submit the bid.