Because HUD foreclosure homes have typically been vacant for an extended period of time, often without any utilities turned on, extra care must be taken during inspection. HUD is working with its private marketing and management contractors (M&Ms) to come up with an efficient way of getting utilities turned on in a foreclosure home before appraisal is completed and keeping things like sump pumps running through the process. Until recently, appraisers did not necessarily have the benefit of having gas and electric service. How could they give a reasonable determination of foreclosure home value without knowing if the plumbing, electric, heating and air conditioning are in working order? These procedures have been changing and resulting in better appraisals of foreclosure homes. However, foreclosure home inspections should be conducted to see for yourself exactly what the condition of the home is so at the settlement table, you know what repairs are needed.
Remember, HUD foreclosures are sold in "as is" condition. If the repairs needed exceed $5,000, HUD can lend you the money through a program called the FHA 203K Rehab HUD Loan Program. I've blogged about it here . HUD wants you to use a real estate agent to assist you with submitting the appropriate contracts and forms if your foreclosure home bid is accepted. You can the HUD property list online at www.hud.gov . Take your time reading the screens and you will be able to select your state and view your particular listings. The same list of foreclosure homes is available at www.hudindex.com , plus some really useful news, information and reports as well as contact information for your local real estate agents and mortgage lenders specializing in foreclosures. Best of luck, and happy hunting!
For the latest real estate foreclosure news and information, visit www.USHUD.com, America's only free foreclosure resource.
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