Very simply put, a HUD Home is a property that has been foreclosed on that is owned by HUD. HUD does not guarantee the condition of any property, FHA-insurable or not, nor whether it meets local codes or zoning requirements. If your bid is acknowledged, your broker must submit a correct HUD Sales Contract, along with other required forms and Addendums signed by you, to the Asset Manager Regional office within 48 hours. Except for the first 30 days, that is: legally, HUD cannot accept bids on homes from real estate investors within the first 30 days that a home has hit the market.
An owner occupant purchaser is a person who plans to live in the property as their primary residence for at least 1 year, and has not purchased another HUD Home as an owner occupant within the past 2 years. Owner occupants are persons who will affirm in writing that they have not purchased a HUD owned property in the last two years and they will live in the home as their primary residence for at least one year. Owner-occupants enjoy purchasing HUD homes because they are not competing with cash investors.
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.
To buy a HUD home, you must contact a licensed and approved HUD broker or other agent authorized to sell HUD-owned homes. HUD homes may be eligible for repair loans built into the mortgage and buyers may qualify for 3 percent down payments. Government Agency – Approved government agencies can bid on homes in lottery, exclusive, and extended phases provided they are in approved purchase areas. If you are paying cash for a HUD owned home you will be required to provide proof of funds sufficient to purchase the property.
Because HUD contracts out the management of its properties, these links will take you to the website run by the property management company for the state you select. Our HUD properties are mostly in the Buffalo area as well as many of the surrounding areas of Western New York. An acknowledged bid does not constitute a sale; only a correct contract that is counter signed by Asset Manager and returned to your agent allows you to proceed to closing.