At times we have HUD homes in Northern Colorado available for sale through Blue Tree Real Estate. It also helps the agent narrow down the search so that he or she can only show you homes you would most likely be interested in seriously considering. Whether you are an experienced investor or new homebuyer, buying foreclosed properties from the United States Department of Housing and Urban Development (HUD) is a great way to make money in the real estate market. The Listing Broker may be consulted for assistance and there are training seminars offered regularly for agents, brokers, lenders, and others who are interested in selling or purchasing HUD-owned homes. Perspective purchasers MUST be accompanied by a broker or agent when viewing any HUD home listed for sale.
These agents can help you get pre-qualified for a loan, show the available HUD Homes for sale to you, write a Sales Contract for you to sign and place an offer by electronic bid on your behalf. HUD doesn’t like spending time on flaky buyers, so they require an earnest money deposit to make sure potential purchasers have some skin in the game. In the case of HUD homes there are no negotiations, no haggling, or offer and counter-offers. Or at the very least a buyer can call a local real estate office and ask whether they have an agent or broker in the office who is approved to work with HUD homes.
By working through a few extra steps, following established policies, and doing their own home repairs, buyers have been able to secure quality homes in good neighborhoods at prices substantially below market rate. After this application has been reviewed and approved by HUD, the NPO is issued a Name Address Indentifier NAID# and may buy HUD homes directly from the Website for their purposes. HUD lists their homes on the Internet as well at , and HUD home foreclosures can also be found at RealtyTrac.
Since HUD utilizes a competitive bidding process to determine which offer to accept, part of the analytical process in selecting the winning bid includes deducting the broker’s commission and closing costs from the offer up front. The old FHA programs and the newer HUD programs act as an insurance agency for banks, savings and loans and mortgage bankers who make real estate loans to buyers and investors. However, like with the broker’s commissions, closing costs must be made part of the offer when the bid is submitted to HUD.
These agents must be registered with the folks at HUD and your real estate agent’s broker must have an established account with HUD Idaho as well. In addition to weekly newspaper advertisements in the real estate classifieds, HUD homes are also advertised through a number of other sources. The following information is provided as an introduction to the process through which HUD homes can be purchased. HUD properties are often sold considerably below their market value, making them a great deal for buyers.