What is a HUD home?

Answer: When someone with a HUD insured mortgage couldn't meet the payments, the 
lender forecloses on the home; HUD pays the lender what is owed; and HUD takes
ownership of the home. Then they sell it at market value as quickly as possible.

Who can buy a HUD home?
      Answer:  Anyone!  If you have cash or can qualify for a mortgage, you can buy a HUD home.

Are HUD homes meant for people with low incomes?

Answer:  HUD homes range in price, but most are affordable for low - and moderate - 
      incomes.
                     

Is it true I can get a HUD home for a dollar?

Answer: No. HUD has an appraisal done on the property before they are placed up for sale.

      The house is initially listed at the appraised value. Bids may be made above or below the  
      listed price.

If a HUD home needs repairs, will HUD make them?

Answer: HUD homes are sold "as is", without warranty. That means that HUD will not pay to
correct any problems. But even if a HUD home needs fixing up - and not all of them do - it
can be a real bargain!  For example, HUD's asking price on the home will reflect the fact
that the buyer will have to invest money to make improvements.  HUD might offer special
incentives such as an allowance to upgrade the property, a moving expense allowance, or a
bonus if the sale closes early.  And keep in mid that on most sales, the buyer can request
HUD to pay all or a portion of the financing and closing costs.  We always recommend you
have a home professionally inspected before making an offer, so you will know what kind of
repairs will be needed before you submit a bid.

How do I buy a HUD home?

Answer:  Start by finding a participating Realtor.  A Realtor must submit the offer for you.
Buyer must have a letter from their mortgage company stating they have been pre-qualified for the amount of the offer.  Buyers paying cash will need to provide proof of available funds. During the first 30 days on the market, HUD homes can only be sold as Owner Occupied.  After the 10th day, all bids will be reviewed, if a qualified bid is accepted, the realtor will be notified.  If there are no qualifying bids, the bidding proccess is open again and bids may be submitted daily.  If after the 30 days, there are still no qualified bids, investors may submit their bids, as buyers who do not intend to occupy the property.  Bids can be submitted any day of the week, even weekends and holidays. They will be opened the next business day. If your bid is acceptable to HUD, your Realtor will be notified, usually within 48 hours.

If my bid is accepted, then what happens?

Answer: A Realtor will help you with the paperwork process. You'll be given a settlement
date, normally within 45 days, and told where the transaction will occur.

How can I find out what HUD homes are for sale?

Answer: Call a Realtor, they can supply you with a complete list of all foreclosures in the
area that are of interest to you.

How can I get loan to buy a HUD home?

Answer:  HUD does not make loans directly.  Contact a lender in your area who will walk
you through the process and provide you with your loan approval.