There are five buyer types that are eligible to purchase HUD Homes: Owner Occupants, Investors, Good Neighbor Next Door (GNND), Eligible Nonprofit organizations, and Approved Government Entities. You can move in faster if you purchase a HUD home eligible for FHA-insured mortgage because it has already been appraised. A HUD Home is a residential property that has a FHA insured mortgage and goes into foreclosure. HUD will generally accept the highest bid, or the bid that brings them the highest net.
The Brian Petrelli Team is the expert in Denver HUD homes and foreclosures in the Denver area. A HUD home is a piece of real estate that is owned by HUD due to a foreclosure by a mortgage lender on the previous buyer. Only qualified, licensed real estate agents can get you into the property to see it firsthand and actually put in an offer on a HUD home.
You may have to forfeit all or part of the earnest money if the sale does not close. If you’re looking for good value, here is some information to help you navigate the road to owning a HUD home. There is also a chance that HUD will accept an investor’s low bid if HUD changes the price on their homes, and that low bid is now in an acceptable range to HUD.
If you are interested in learning more about the HUD home purchase process give Cindy Jones and CJ Realty Group a call to discuss the HUD home buying process in more detail. The Forfeiture of Earnest Money Deposit” document clearly states that if an individual buyer submits a contract to purchase a HUD home and does not perform, the 5 percent deposit will be retained by HUD on a non-refundable basis.
Based on this appraisal price and how much is left to be paid on the defaulted mortgage, HUD will decide how much to list the home for. They are listed for sale just like any other houses, on the Internet and through the Multiple Listing Service. On the HUD website you’ll see in the left sidebar a link to HUD Homes This page provides links to all fifty states and the District of Columbia.