Buying HUD Repo's
First, let me start by saying, any agent can show you a HUD property and I don't want to imply that the HUD listings are my own listings. I am an approved agent who can give you tours of the HUD properties and help you in submitting your bid. The information below will give you a little insite about HUD properties and how to buy one.
What is a "HUD Home" and Who Can Buy a "HUD Home"? When a homeowner cannot meet the payments of a HUD insured mortgage, the home gets foreclosed by the mortgage lender. The mortgage lender then transfers ownership of the home to HUD and collects the amount owed to it. HUD will then offer the home for sale at market value with the intent to sell as quickly as possible. Anyone can buy a HUD home, if pre-approved for a mortgage or have a verifiable amount of cash for the purchase. Most HUD homes are affordable to low and moderate income Americans.An owner-occupant, who intends to buy a HUD home as his or her primary residence, usually has priority over other buyers. However, this priority expires after a period of time and the real estate becomes available to other qualified buyers.
Locally, in the past 6 months, HUD homes have been listed under $20K all the way up to the low $100s, and in all areas of town, including SW Topeka and the Seaman school district. New Listings and price reductions happen WEEKLY. Click to see HUD Listings
How to Buy a "HUD Home"? HUD homes are for sale at market value and can only be bought through a real estate agent approved by the U.S. Department of Housing and Urban Development. Approved agents can submit bids any day of the week, including weekends and holidays. All submitted bids are reviewed within a short delay and generally, the highest net bid is accepted. Just like in any other real estate transaction, an earnest check of $500 or $1000 will need to be written at the time the offer is submitted. If there is no acceptable bid, the home becomes open to new bidding until sold. If a bid is accepted, your real estate agent is notified usually within 48 hours. Settlement is usually within 30-60 days, during which time financing is arranged and the sale is closed. If you do not close by the settlement date, your earnest money deposit is forfeited or you have to pay for an extension of your sales contract.
Since HUD homes are sold on an “as-is” basis, a professional home inspection before submitting a bid is recommended. HUD will not pay for any needed repairs or corrections for any defects found. Keep in mind that repairs, replacement and/or renovations can add up, so remember that just because a home is priced below value, doesn't always mean it's a great deal. If you have questions about buying a HUD home, or flipping homes for profit, call me at 785-249-6353, I would be happy to speak with you.