Buying a HUD Home Who Can Buy, How Can They Buy Foreclosures Auction

Who and How can you buy a Foreclosed home owned by HUD? I can submit bids for you, because you have to have a Realtor represent you in the process. The following information was taken from one of the websites representing HUD in the liquidation process.

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What is a HUD Home?
A HUD home is a 1-to-4 unit residential property acquired by HUD as a result of a foreclosure action on an FHA-insured mortgage. HUD becomes the property owner and offers it for sale to recover the loss on the foreclosure claim.

The following information is provided to as an introduction to the process through which HUD homes can be purchased . You can either scroll down the page, or access specific topics through the following topic menu. Additional links provided in the menu to the right provide access to FHA program and policy information for homeowners, homebuyers, and members of the mortgage lending and real estate industries.

HUD HOMES TOPIC MENU

Who Can Buy a HUD Home?

How Are HUD Homes Sold?

Should I get a Home Inspection?

What About Financing?

Where Can I Learn About Available HUD Properties?

Does FHA Offer Any Special Discount Sales Programs?

HUD Assistance for Disaster Areas

Additional Information About HUD Homes and Other FHA Programs

Who Can Buy a HUD Home?

Almost anyone! If you have the cash or can qualify for a loan (subject to certain restrictions) you may buy a HUD Home. HUD Homes are initially offered to owner-occupant purchasers (people who are buying the home as their primary residence). Following the priority period for owner occupants, unsold properties are available to all buyers, including investors.

If you are an evacuee displaced by Hurricane Katrina, Rita or Wilma, you may be eligible to purchase a HUD Home at a discounted price.

How Are HUD Homes Sold?

All properties available for purchase by the public are offered for sale at Internet listing sites maintained by management companies under contract to HUD. Any real estate broker registered with HUD may submit an offer and contract to purchase on your behalf. HUD pays the real estate broker's commission, if included in the contract.

HUD Homes are offered for sale at fair market value, based on a recent appraisal. Generally, HUD Homes are sold in what is known as an "Offer Period," during which a potential buyer's offer must be made. At the end of the Offer Period, all offers are opened and the bid providing the highest acceptable net return to HUD may then be accepted. Following the initial "Offer Period" homes remaining unsold are offered on an "extended" basis which means offers may be submitted any business day. If a bid on one of these homes is acceptable, the broker will usually be notified within 48 hours of HUD's acceptance of the offer.