HUD properties are very sought after. Indeed, people in the real estate business know that you have a good chance of getting a good bargain if you choose to make a selection from properties that are in the foreclosed listings. Both the government and private lending institutions have their lists of these foreclosed properties.
According to many experts, you can enjoy lower prices on foreclosed homes when you choose HUD properties, that is, from those that are in the possession of the Department of Housing and Urban Development or HUD.
The HUD auction and the price of HUD homes for sale
The HUD holds regular auctions where foreclosed homes are put up for sale. The prices on these HUD properties are generally much lower than the market value, but you will have to look carefully at the house you are bidding on to see whether it is in good condition or not.
If a HUD property is priced unbelievably low, chances are that it is in need of considerable repairs or renovations. However, even the well-maintained houses in the care of the HUD are still going to be priced reasonably so you will definitely be able to get a good deal no matter what.
Department of HUD online
The HUD website has a listing of all foreclosed properties in the country that they are putting up for sale. You can narrow down your search by indicating your preferred location, the type of house you want or your budget limit.
Once you enter these parameters, the HUD website will give you a list of homes that fit your requirements. You can then make a selection from this list and hire a real estate agent to show you the property. Make sure that your agent has approval from the department of HUD to perform this transaction.
HUD guidelines to buy HUD properties
When buying HUD properties from HUD listings, you have to follow certain protocol — you cannot just make an offer and expect to get the house right away. There is a bidding period during which all the prospective buyers will submit their bids confidentially to the HUD.
After the bidding period, HUD officials will open the bids and declare the highest bidder to be the winner. In rare situations where the highest bidder is unable to finalize the purchase, the HUD property will be awarded to the next highest bidder, and so on.
Even if the HUD has declared you the new owner of the house, the process does not stop there. You will still have to set up payment plan to make sure that the property will be transferred to you without any problems.
Finally, when you have already settled into your new home, make sure that you post your mortgage payments responsibly so that you can avoid having to face a foreclosure process yourself. Buying HUD properties entails the same responsibilities to homeowners as when purchasing from private entities.