HUD listings are now more popular than ever as the threat of foreclosure is a problem that more and more homeowners are facing in recent times.
Unfortunately, not many people really know what goes on in a foreclosure process, nor do they understand why some homes end up becoming a property of the US Department of Housing and Urban Development or HUD and thus on HUD listings.
Basically, this happens when the homeowner originally took out a mortgage loan that is insured by the HUD. When the homeowner is unable to make the monthly payments, the lender will claim the unpaid balance from the HUD and the ownership of the home will be transferred to the federal government. A list of all these repossessed homes can be found in the HUD foreclosure database or HUD listings.
What are HUD listings?
HUD foreclosure listings are accessible to the public. In fact, it is one of the best resources when you are looking to buy a good quality home at a lower cost. The HUD properties that are included in HUD listings may be purchased only through a real estate agent that is licensed by the HUD for these particular transactions.
You do not even have to worry about finding real estate agents with this qualification because majority of them are licensed to do this. All you have to do is secure a copy of HUD listings of foreclosed homes in the area that you prefer and start looking around.
How to buy a HUD foreclosure property
There is a system to follow if you want to purchase a foreclosed home from the HUD listings with HUD assistance.;
- First, you will obviously have to procure a list from the local HUD office or from their website.
- Once you have chosen a property off the list, you have to find yourself an agent who can make the transaction on your behalf.
- There is a bidding period during which you must submit your bid amount on the house. All bids are confidential and are only opened once the bidding period is over, during which the HUD will announce the winner.
The condition of the HUD foreclosure properties
One of the important things you should know about HUD is that they usually sell the homes exactly in the state that they have been acquired. No repairs or renovations are made on these houses so you would have to consider those expenses before you submit a bid.
It is also recommended that you get an appraisal of the home before making any bid so you know exactly what you are bidding on, because HUD listings do not include detailed information on the HUD foreclosure properties. You will not want to win the auction on a high bid only to find out later that the foreclosed house you got is in need of major internal repairs.
However, it is also interesting to note that while some HUD foreclosure homes are not in very good condition, there are also those that have been well-maintained by the previous owners. If you search well, you might be lucky enough to find an excellent house at a very low cost in the HUD listings.