HUD Homes resulting from foreclosures often represent a great way to get a fantastic deal on a home. From what I was able to find out, the house was foreclosed, it went on to a scheduled sheriffs auction”, the auction never took place or got canceled because HUD took possesion and supposedly is now letting him live there almost rent free. That second note gets ripped up after three years,” said Kevin Kelly, a local listing broker for HUD homes in the Buffalo area.
I have sold many HUD homes to investors, who were able to flip the house or get a great deal on a rental property because they needed a lot of work. For more information, speak with brokers who handle HUD homes and be sure to ask about condition, financing, and discounts.
HUD does not guarantee the condition of any property, FHA-insurable or not, nor whether it meets local codes or zoning requirements. In the case of HUD homes there are no negotiations, no haggling, or offer and counter-offers. If HUD receives a bid that is close to what they need out of the home, they may counter a buyer.
The federal government, HUD, becomes the owner and offers the property for sale to recover the loss on the foreclosure insurance claim. Generally advertised under the heading, New Listings,” HUD wants the buyers of these properties to actually reside at that property for at least one year.
HUD homes can purchased at prices well below market value, according to Realty Trac. For whatever reason, many HUD appraisals come in very low compared to market value If a HUD home makes it through the owner occupant bid period, they can be a great opportunity for investors.