HUD Homes for Sale – Bidding Process

HUD homes for sale are foreclosed properties, but buying them is different from buying regular foreclosed properties. With HUD, to buy houses for sale you have to submit an offer and then go through a certain process before you can call the house your own. HUD is short for Department of Housing and Urban Development and is proactive in helping to provide prospective homeowners with housing assistance. When he listed a HUD home, it was one that was purchased with an FHA loan that has been foreclosed. FHA stands for Federal Housing Administration. The resale of these homes is different from that of other repossessed homes.

property inspection

• Because it’s a foreclosed home, you’ll get the home as-is with no repairs, additional financing, or changes involved. You will receive it in the condition in which the previous owners left it.

• Examine the property thoroughly because if it is going to cost a lot to make the repairs it will be wasteful.

• When deciding the price, HUD will also consider the value of the repair, so the cost will be less than its market value.

• Inspect the home for sale for cracks, wiring or plumbing problems, leaks, etc.

bidding process

• Your real estate agent will submit a sealed offer to HUD when the property is on the market and the offer period is open.

• Offers will open after the offer period closes

• The real estate agent will continue to check the website frequently to see if your offer has been accepted.

• If the house does not sell after the offer period, an offer can be submitted daily and opens the following day. The price will also be reduced.

• Once an offer is accepted, the real estate agent contacts you and the deal moves forward.

One important thing to remember is that if you decide to cancel your offer, you must do so before the offer period ends.

Initial offer

• Once your offer is accepted, you will sign the agreement

• You will receive a settlement date, which will be approximately a couple of months instead of 40 to 60 days from signing the contract to close the deal and become an owner.

• If you decide not to buy the house for sale, you will lose your offer money

• If inserted into the contract, HUD will pay approximately six percent commissions to your real estate agent.

HUD will not finance the home, so you will need to obtain your own financing.