How To Buy a HUD Home in Colorado Springs

How do you buy a HUD home in Colorado Springs? I get this question at least once a week so I thought I would write a post on the basics of purchasing a HUD Home here in Colorado Springs.

What is a HUD home?

A HUD home is a home (single family up to a four-plex) that is owned by the US Department of Housing and Development. The ownership is a result of a foreclosure on an FHA insured loan.

How to you view or buy HUD homes?

HUD homes in Colorado Springs are managed and sold by a law agency called Michaelson, Connor and Boul. The homes are all listed on the MLS with a local Real estate agent and also on the MCBREO website

On the website you will go to the Colorado section and then type in Colorado Springs for the city. You will find a list of active HUD listings. Your real estate agent can also send you a list of HUD homes in specific areas and price ranges that meet your criteria.

If you find a home you are interested in and want to take a look at it, you must be accompanied by a HUD APPROVED Real estate agent.

If you would like to put an offer in on a HUD home, you must do it through an approved HUD Real Estate agent online. Homes are offered first to owner occupants for the first 10 days listed. After that initial time frame, HUD will examine bids for one that is acceptable (usually highest net to HUD after closing costs and Realtor fees). If there is not an acceptable bid, then at that time HUD will open the bidding process to investors and non/owner occupants.

Will HUD fix things found in an inspection?

NO. HUD homes are sold AS IS. It is very important to have the home inspected by a licensed inspector.

How does HUD determine the value of the listed property?

The first list price of the home is the price of market value that is established by an FHA certified appraiser. The price is based on the property's current condition. Some of the properties will have an escrow amount that will be needed in order to get the home FHA insured. You can view this amount on the website.

The website also lists a property condition report. If you find the SAME items in your inspection, and you decide you want out of the contract, you may lose your earnest money. Make sure you review the condition report BEFORE placing a bid on the property.

When do I know if I have the winning bid?

After the initial bidding period, HUD will place the winning bid on the website the following day and send an email to the real estate agent. Once you receive notification, your agent must submit your contract package do HUD within 48 hours. Most closings will occur 30-60 days after your winning bid notification. You can view the winning bids online under Bid Statistics.

If you are looking to buy a HUD home, or if you have more questions about the process, call Kristi DeFazio anytime.

Kristi DeFazio is an experienced, licensed real estate agent in Colorado Springs and certified to sell HUD homes.

The website and process for buying a HUD home has changed effective 1-1-2011. Here is the link to the changes in the HUD buying procedure