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. Buying a home through HUD’s Good Neighbor Next Door initiative is designed to encourage renewal of revitalization areas by providing an opportunity for law enforcement officers, firefighters, emergency medical technicians and teachers to purchase homes in these communities. HUD uses asset management companies to sell and manage their homes and property preservation companies to maintain their homes. I have a cash buyer interested in a HUD home here in Texas but they do not want to give up their SS#.
Before FHA properties are publicly listed for sale, they are first evaluated to ascertain if they qualify for direct, exclusive sale to units of local government and FHA-approved nonprofit organizations. If you are interested in buying a HUD home visit for current homes for sale and be sure you are working with a HUD approved REALTOR, which we are! Find Properties that match your search criteria and receive notifications when new homes hit the market.
Also, my tracking information is based only on properties that were listed with Southern REO , which was HUD ‘s preferred regional listing agency to which I worked as sales agent & sales manager for nearly 3 years. A HUD home is a 1-to-4 unit residential property acquired by HUD (Department of Housing and Urban Development) as a result of a foreclosure action on an FHA-insured mortgage.
HUD does allow and encourage inspections of their listings and for properties where repairs are obvious they offer a repair credit based on their estimates of the work to be done. I would try to contact the listing agent and if they are unresponsive go up the ladder to HUD. On uninsured properties, HUD will list them on Hudhomestore for 7 days, but the only eligible bidders are non-profits and government agencies.
It is very important to remember that HUD homes are always sold in As Is” condition, which means that HUD will absolutely not make any repairs to the property and they do not warrant the condition in any way. Current mortgage rates represent a bargain – and that goes double if you can find a great deal on a HUD home. HUD always pays the listing broker a 3% commission and the selling broker can get up to a 3% commission. HUD incorporated numerous housing agencies and assumed administrative responsibility for them.