Department of Housing and Urban Development (HUD) residential foreclosures are available throughout the United States. It is an unusual case because the list price is more than double what most HUD houses in this area list for. You can find HUD properties by calling a local real estate agent or authorized HUD broker, looking in the newspaper for HUD property sales or by calling HUD directly.
In the event of a foreclosure, HUD will have to sell the defaulted property in order to get back the money lost on the loan. The only thing I worry about now for my own HUD circumstances, is the FHA appraisal for the HUD house is ridiculously low. Once the money has been given, the lender will receive an insurance policy from HUD that protects its financial interest.
Am finding HUD is intentionally NOT disclosing important issues that affect the home’s condition. When homeowners with HUD-insured mortgages default on their home loans, HUD forecloses the properties and sells them to the general public at public auctions. If a HUD home is on the market for an extended period, they may take even less.
HUD homes were properties with FHA insured mortgages from the Federal Housing Administration. That appraisal is usually the list price, and determines how much money HUD will take for the home. Call Kevin Kelly at 716-912-4483 or your agent for more information on HUD homes.
HUD homes must be purchased through HUD approved brokers which Horizon Realty has been for many years. HUD accepts the highest bid that provides them with their acceptable net proceeds. Many of these HUD homes are now being offered for a fraction of their market value – sometimes 30-50 percent!