Buying A Hud Home Foreclosure – Fha Foreclosure List

31 October, 2010

Introducing HUD foreclosure homes

Buying a foreclosure home from HUD is not the same as buying a foreclosure home from a bank. HUD is an acronym for the Department of Housing and Urban Development, which is federally funded. If you have a HUD home, the loan is federally insured by the FHA (Federal Housing Administration), which is an organization under the HUD umbrella that insures mortgages. Times are hard proper now; let’s for instance say that you are not able to meet your mortgage obligations because you have been out of work. You lost your job and can’t seem to find another one right now. Your lender would file an insurance claim, and then the insurance would pay the lender. HUD then becomes the owner of your property.

The appraisal

Once a foreclosure is started, HUD has the property appraised, the house then goes on the market. HUD homes are quite glowing to many home buyers because the brand of the home can be adjusted. Let’s impartial say your home has been foreclosed upon and there is a lot of disrepair to the home. Let’s just say that there is at least $20,000 worth of damage done to the home. Now let’s say someone comes along and wants to buy your home, but it will cost the buyer $20,000 to renovate the house. The price of the house would then be lowered to believe the investment of $20,000 to make the house presentable. HUD does not hire anyone to fix houses so they can sell them, they sell the houses as is and whatever investment the buyer will have to make will be shaved off the price of the property.

Visit the Website and get an agent

Please visit http://www.hud.gov to see the list of foreclosed HUD homes for sale. You will see that there are a number of single and multi-family dwellings. If you catch a home that you are interested you must then need to work with a HUD approved realtor. You can’t just go to the website and lift a home that way; you must go through an common realtor. Once you find an approved HUD realtor, that realtor will take you to view the home.

Now let’s say you have contacted a HUD celebrated actual estate agent, and the agent showed you the property. You can’t just say, I want this one and pick it. You must make a sealed bid stating what you are willing to pay. There is a specified time period for bidding; it may be 30 to 60 days. After the specified time period has expired the bids will be opened. The highest bidder on the home gets to buy it.

Get your financing before you bid

By a specified time after the settlement date, if for some reason the person who bid the highest did not near back to complete the sale of the property, then the next highest bidder would accept the chance to buy the property. If you are interested in buying a HUD home foreclosure, you will not be able to get it financed by HUD. You can get your financing through a bank, mortgage company or credit union.

When you make a bid on a HUD foreclosure home, you will need to put up some money to show you are seriously interested in buying the home. This money is called earnest money. Before you make your bid on the HUD foreclosure home, make sure you have your financing already lined up. Once you as the bidder get the green light to make the hold you can’t hold up the process by trying to get financing-financing has to be already set up. Let’s just say you didn’t have your loan already state up, and then you got turned down for a loan after putting up your earnest money. You would lose your earnest money if you were not able to make your sale, so it is to your advantage to have all your bases covered before you make a bid to catch a HUD foreclosure home.

Source:

http://www.foreclosure-aid.info/connecticut-bankruptcy-lawyer/connecticut-bankruptcy-lawyer.php