Buying HUD Homes
Buying HUD Homes can be the answer to making your dream of home ownership come true especially, if you don’t have the million dollars or $800,000 that houses normally sell for.
The U.S. Department of Housing and Urban Development (HUD) has a wide array of foreclosure HUD homes for sale. They are offered to buyers who have the intent of using the dwelling as their primary residence. If no home buyer is able to make a purchase at the initial launch of an HUD property, investors are then allowed to join the bidding contest.
How HUD Houses Are Acquired
These homes are usually sold through a bidding process. An Offer Period is provided to those who would like to bid for one of these properties. Home buyers should hire a real estate agent to make bids on his behalf. Once the Offer Period expires, the department will then choose the winning bidder. The highest bid is usually the one chosen, unless certain circumstances disqualify the highest bidder.
If the initial bidding process fails to produce a winning bidder, HUD will launch an open bid, or a first-come, first-serve type of bidding process. Once a reasonable bid is found, the winner will be declared and that winning bidder will have one month to two months to close the contract.
Buying HUD Homes Expenses Involved
The price of HUD homes for sale would depend on the location and the result of the appraisal that would be conducted by HUD. For dwellings that require repairs, the price would be lower. Buyers should be aware that these homes are sold in an “as is” condition. Buyers would have to take care of the repairs needed, if there are any, and should not rely on the agency to pay for them.
Financing for HUD dwellings is the responsibility of the buyer. Before making a bid, a buyer should make sure that the financing package is in order and that he has enough money for the deposit. If financing is still not secured by the time the period for completing the contract has elapsed, the buyer can lose the property, including the deposit that he has put down for the house.
Joseph B. Smith has been educating buyers on the finer points of Foreclosure Properties at ForeclosureDeals.com for over ten years. Contact Joseph B. Smith through ForeclosureDeals.com if you need help finding information about Foreclosure Properties.
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