This is a private website and is not endorsed by or affiliated with any local, state or federal government agency or authority. HUD accepts the highest bid that provides them with their acceptable net proceeds. HUD also recently began giving first shot at homes coming into the system to people made homeless by Hurricane Katrina at the same 10 percent discount. Homes built before 1978 may contain lead-based paint, so learn more about lead paint hazards before making an offer.
If foreclosures are not sold within six months, HUD may sell them for $1 each to approved nonprofit organizations and government agencies. HUD provides a Property Condition Report but that is only their inspector’s opinion and is only based on that moment in time.
HUD will generally accept the highest bid, or the bid that brings them the highest net. Whether you are an experienced investor or new homebuyer, buying foreclosed properties from the United States Department of Housing and Urban Development (HUD) is a great way to make money in the real estate market.
HUD homes are always sold as is. Because of this, many people are unable to buy some HUD homes that need excessive repairs. HUD homes are appraised and then priced at fair market value for their location. The more repairs a HUD home needs, the better chance it will make it to the investor bid period, and uninsured homes are much more likely to be bought by investors.
It’s a home that has been foreclosed on and the loan was guaranteed by the Department of Housing and Urban Development or HUD. That second note gets ripped up after three years,” said Kevin Kelly, a local listing broker for HUD homes in the Buffalo area. The great part about buying a HUD home as an owner occupant is that your competition for the property is only other owner occupants.