Answer: Read our section on how to buy a HUD home Then look at the listings of HUD homes available. Buyers are very strongly encouraged to have homes inspected by a qualified home inspection company to satisfy themselves as to the condition of the property at the time of sale. Once a HUD home becomes aged in my market, HUD may take 80 percent of list price.
Once HUD approves the offer, which can take months, time to funding is only a matter of days, not weeks, as it is in a conventional purchase. The best investment you can make is to order a home inspection before you buy a HUD home. HUD has very strict owner occupancy restrictions that I explain in detail here On FHA insured HUD homes only owner occupants, non profits and government agencies can bid on HUD Homes.
HUD wants to sell these properties quickly to recover as much as possible on its investment. Dealing with HUD is different and takes a lot of patience, but it was worth it for me. HUD isn’t allowed to make ANY repairs, and VA buyers are not allowed to make ANY repairs either, but it will not pass inspection as it now is!
When a HUD home goes up for sale, the price is set based on local market conditions and an appraisal. There is definitely an art and science to bidding on these foreclosures, and I’ve seen homeowners bid way too much for a HUD Home due to inexperience. To buy a HUD home, you must contact a licensed and approved HUD broker or other agent authorized to sell HUD-owned homes.
HUD offers a discount of 50% from the list price of a home located in revitalization areas and in return GNND participants must commit to live in the property for at least 36 months as their sole residence. HUD does not warrant the condition of its properties and will not pay for the correction of defects or repairs.