Janna Rankin Scharf, Coeur d' Alene Idaho Real Estate Q & A
First of all, what is a HUD home?
It is a home that is the result of a foreclosure action on a FHA-insured mortgage. In other words, it's a repo. HUD paid the insurance claim and now is the property owner. It is offered for sale to recover the loss on the foreclosure claim.
By definition, a HUD home can be a 1 to 4 unit residential property. When first hitting the market, they are offered to owner-occupied buyers first. After the initial offering, unsold properties are available to all buyers, including investors.
How Do I find a HUD home?
HUD repos are available to the public on the internet by management companies under contract to HUD. The bid to purchase must be made through a broker registered with HUD. Any real estate commission earned is paid by HUD, and HUD will also pay 3% of the purchase price towards your closing costs.
On their site you can search by state, county, city or zip code. Check the site frequently because you never know when a new home will pop up.
What if I see a home online that I would like to look at, and possibly bid on?
Because my office is registered with HUD, I have a key available and will accompany you to view the home. The good ones go fast. To increase your chance of success, you should be pre-approved with your lender for a HUD home and be ready to get a bid in just as quickly as you can. Be prepared and ready to pounce when you see a great home hit the market. Often there will be multiple offer situations, speed is the name of the game!
Find more detailed information on How to Buy a HUD Repo at this site:
U.S. Department of Housing and Urban Development