December 18, 2012

More About HUD Homes

In addition to traditional listings, Team Troy is also registered with HUD and holds several of these types of listings.

What does HUD stand for?

HUD stands for the Department of Housing and Urban Development, and is an agency within the federal government. HUD supports housing efforts for lower and middle classes Americans through grant programs and insuring high-risk mortgages.

How are HUD homes different from traditional listings?

When someone with a HUD insured mortgage can’t meet payments, the lender forecloses on the home; HUD pays the lender what is owed; and HUD takes ownership of the home. HUD then sells the home at market value through a Marketing & Management Coordinator.

Who can buy a HUD home?

Anyone who can pay cash for HUD home or can qualify for a mortgage is able to own a HUD home. Owner occupants must live in the house as their primary residence for at least one year and may not purchase another HUD home as an Owner Occupant for two years. Buyers must use a broker or agent who is registered with HUD to place a bid on a property.

How do I get started buying a HUD home?

You should start by finding a participating real estate agent. Your agent must submit your bid for you. Normally, HUD homes are sold in an “Offer Period.” At the end of the Offer Period, all offers are opened and considered to be received simultaneously and the highest acceptable net bid is general accepted. If the home is not sold in the initial Offer Period, you can submit a bid until the home is sold. Bids can be submitted any day of the week, including weekends and holidays.The results from the review of all accepted bis are posted on our website. It is the responsibility of the agent to check our website for accepted bid information and ensure that all the required forms are properly filled out and sent to us within two business days of acceptance.

HUD homes are listings on our website and in the local MLS and you can find some nice homes at an affordable price.

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Stay tuned for our next blog post about HUD homes as investments.