We all know that foreclosures are on the rise and some people may be wondering about the possibilities for financial gain. You may have wondered if you can get a good deal on a foreclosed home. While many banks auction or otherwise sell their foreclosed homes, many people are especially interested in HUD homes. HUD homes are homes foreclosed on by the Federal Housing Administration or FHA. Should you buy a HUD foreclosed home now, and how do you go about buying one of these homes or residential units? It is easier to buy a HUD home than you might expect, if you have the cash or financing to do so. There are some specific regulations, and it can be more difficult if you are buying as an investment property instead of your own home.
How can you find a HUD foreclosed home? Your first step is to look at online HUD home listings. The official website offers a state by state list of foreclosed homes. If there is a home you are interested in, you will need to contact a real estate professional in order to see the home and possibly eventually make an offer. HUD homes are priced at appraised market value; however, many of these homes are affordable to the average home buyer. There is typically a bidding process during an offer period; however, after that period offers are opened and considered as received. A real estate agent in your area can prepare an offer and present it, assuming he or she is authorized to sell HUD homes.
There are some specific considerations you should know about with regard to buying United States Department of Housing and Urban develpment foreclosed homes. First, all HUD foreclosed homes are sold as-is. The buyer may choose to pay for a home inspection to be aware of any problems with the home prior to purchase. You may wish to have an inspection performed prior to making an offer to allow any repairs or problems in the home to factor into the bid price. Do keep in mind that older homes may have asbestos, lead or other significant issues.
During the initial offer period, bidding is only open to buyers who will reside in the home; however, investors may make offers after that time. Those left homeless by Hurricane Katrina, teachers, and full time law enforcement officers may have additional HUD buying opportunities, lower costs and more available. If a foreclosure is not sold within six months, it may be sold for $1.00 to not profit organizations devoted to providing housing for the needy. HUD does not provide financing, and you will need to secure your own financing, preferably before making an offer on a home. A foreclosed HUD home can offer you the opportunity to own a home at a reasonable market value, with an efficient and practical buying process.