About Buying HUD Homes
What is a HUD Home?
A HUD home is a 1 to 4 unit residential property acquired by HUD as a result of a
foreclosure action on an FHA-insured mortgage. HUD becomes the property owner
and offers it for sale to recover the loss on the foreclosure claim.
Who can buy a HUD Home?
Almost anyone! If you have the cash or can qualify for a loan (subject to certain
restrictions) you may buy a HUD Home. HUD Homes are initially offered to
owner-occupant purchasers (people who are buying the home as their primary
residence). Following the priority period for owner occupants, unsold properties are
available to all buyers, including investors.
If you are an evacuee displaced by Hurricane Katrina, Rita or Wilma, HUD could sell a
HUD home at a discount to you!
How are HUD Homes sold?
All properties available for purchase by the public are offered for sale at Internet
listing sites maintained by management companies under contract to HUD. Any real
estate broker registered with HUD may submit an offer and contract to purchase on
your behalf. HUD pays the real estate broker's commission, if included in the contract.
Are there any special programs?
Properties in designated areas are available at a reduced sales price to law
enforcement officers, teachers, firefighters, emergency medical technicians,
nonprofits and local governments. Read more about these Good Neighbor Initiatives
by visiting HUD's website.
Should I get a home inspection?
We encourage you to get an inspection after your offer is accepted. All HUD Homes
are sold AS-IS, without warranty. HUD will not make repairs nor pay to correct any
problems.
What about financing?
Although HUD does not offer financing directly, some of our homes qualify for
FHA-insured loans. Shop around for a lender to find the best loan terms. Find out
how an FHA loan can help you.
Content current as of 19 June 2008 (excerpts from HUD's website)
What is the Process in Buying a HUD Home?
The first step would be to scout for HUD approved brokers and enter into a Buyer
and Broker Representation Agreement.
Only HUD Approved Brokers are permitted to bid. HUD approved brokers are
contracted by HUD's Management & Marketing Contractor (M & M). For a list of
approved brokers by HUD's Management & Marketing Contractor, PEMCO, Ltd in
Northern California visit PEMCO's website. For additional information refer to the
website link for the Management & Marketing Contractor for HUD in the Northern
California area. Please refer to the link for contractors in other areas or outside the
State of California.
Management and Marketing (M&M) Contractors market and manage single-family
properties owned by, or in the custody of the Department. HUD-owned houses are
often referred to as HUD Homes.
All the required documentation are stated on the listing and should be submitted with
the bid. Please refer to the additional information and documentation required for
Northern California listing by PEMCO, Ltd at their website.
Earnest Money Deposit Requirements
Earnest money deposit paid to the U.S. Department of Housing & Urban Development
or Buyer's name either in the form of cashier's check, money order or bank certified
check must be made with the bid through HUD's approved broker.
$500 Earnest money is required for purchase price of $50,000.00 or less.
$1,000 Earnest money is required for purchase price over $50,000.00.
For all vacant lots, the earnest money is 50% of the purchase price.
This requirement applies only to Northern California listings.
What is a HUD Home?
A HUD home is a 1 to 4 unit residential property acquired by HUD as a result of a
foreclosure action on an FHA-insured mortgage. HUD becomes the property owner
and offers it for sale to recover the loss on the foreclosure claim.
Who can buy a HUD Home?
Almost anyone! If you have the cash or can qualify for a loan (subject to certain
restrictions) you may buy a HUD Home. HUD Homes are initially offered to
owner-occupant purchasers (people who are buying the home as their primary
residence). Following the priority period for owner occupants, unsold properties are
available to all buyers, including investors.
If you are an evacuee displaced by Hurricane Katrina, Rita or Wilma, HUD could sell a
HUD home at a discount to you!
How are HUD Homes sold?
All properties available for purchase by the public are offered for sale at Internet
listing sites maintained by management companies under contract to HUD. Any real
estate broker registered with HUD may submit an offer and contract to purchase on
your behalf. HUD pays the real estate broker's commission, if included in the contract.
Are there any special programs?
Properties in designated areas are available at a reduced sales price to law
enforcement officers, teachers, firefighters, emergency medical technicians,
nonprofits and local governments. Read more about these Good Neighbor Initiatives
by visiting HUD's website.
Should I get a home inspection?
We encourage you to get an inspection after your offer is accepted. All HUD Homes
are sold AS-IS, without warranty. HUD will not make repairs nor pay to correct any
problems.
What about financing?
Although HUD does not offer financing directly, some of our homes qualify for
FHA-insured loans. Shop around for a lender to find the best loan terms. Find out
how an FHA loan can help you.
Content current as of 19 June 2008 (excerpts from HUD's website)
What is the Process in Buying a HUD Home?
The first step would be to scout for HUD approved brokers and enter into a Buyer
and Broker Representation Agreement.
Only HUD Approved Brokers are permitted to bid. HUD approved brokers are
contracted by HUD's Management & Marketing Contractor (M & M). For a list of
approved brokers by HUD's Management & Marketing Contractor, PEMCO, Ltd in
Northern California visit PEMCO's website. For additional information refer to the
website link for the Management & Marketing Contractor for HUD in the Northern
California area. Please refer to the link for contractors in other areas or outside the
State of California.
Management and Marketing (M&M) Contractors market and manage single-family
properties owned by, or in the custody of the Department. HUD-owned houses are
often referred to as HUD Homes.
All the required documentation are stated on the listing and should be submitted with
the bid. Please refer to the additional information and documentation required for
Northern California listing by PEMCO, Ltd at their website.
Earnest Money Deposit Requirements
Earnest money deposit paid to the U.S. Department of Housing & Urban Development
or Buyer's name either in the form of cashier's check, money order or bank certified
check must be made with the bid through HUD's approved broker.
$500 Earnest money is required for purchase price of $50,000.00 or less.
$1,000 Earnest money is required for purchase price over $50,000.00.
For all vacant lots, the earnest money is 50% of the purchase price.
This requirement applies only to Northern California listings.
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GOLD FORTUNE REALTY
our client's needs, and we
work hard to realize their
dreams as if they were
our own.
GOLD FORTUNE REALTY
