HUD (Housing and Urban Development) partners with FHA (Federal Housing Administration) to help prospective homeowners buy a house by insuring the loan. When HUD housing is first put up for bid, only bidders who will live in the home can bid on it. In the listing of homes, you’ll see the designation Owner Occupant,” which indicates that the home is open for bids only by those who will occupy the property.
HUD also offers special home purchase programs for teachers and full time law enforcement officers. To get paid, the selling agent must remember to insert wording in the contract to confirm that HUD will pay a commission. I’ve been in some homes that reminded me of the final scenes from The Silence of the Lambs.
The electronic bids are stored in the computer system and, at the appropriate time, calculations are automatically performed to determine the apparent highest net offer to HUD. The HUD Home Store is the website for the list of all HUD homes for sale including properties available through the special Good Neighbor Next Door and Dollar Home programs.
Most of the homes we look at have damage up here in the Seattle / Tacoma area, if they have acreage… they get vandalized almost immediately! All HUD homes are offered without regard to race, color, religion, sex, national origin, handicap, or familial status.
In addition, HUD will pay up to 3% for standard closing cost items (excluding the closing agent fee which is paid for separately). Because HUD contracts out the management of its properties, these links will take you to the website run by the property management company for the state you select.