How to Buy a HUD Home in New Mexico is a series designed to educate future home buyers to the intricacies of purchasing a New Mexico HUD owned home.
Many of todays savvy home buyers are considering the different opportunities available from Short Sales, Bank Owned Homes (Foreclosures) and the like. One of those options is HUD homes. A HUD (Housing and Urban Development) home simply means a home that has gone through the foreclosure process on an FHA insured mortgage and is now owned by the US federal government or HUD.
Buyers need to understand the that all real estate transactions are not created equal and todays buyer needs to be familiar with the complexities and differences in each. Often times these differences may dictate the type of loan you can acquire, who pays certain closing cost or if there is a home warranty as an example. Here are the first four key components of How to Buy a HUD Home in New Mexico.
- Get Prequalified FIRST. There is no point in attempting a bid on a HUD owned property if you are not either pre-qualified with a supporting letter from your lender or you have proof of funds for a cash purchase. HUD will not consider offers without this!
- Hire a New Mexico Realtor that has been certified by HUD to handle a New Mexico HUD Home transaction. The agent must have a current NAID number to act on your behalf. You MUST have an agent representing you. A small percentage of New Mexico agents/Realtors have the necessary NAID. I am one of those few.
- Have your Realtor conduct a search for New Mexico HUD owned homes for sale or simply search the HUDHomeStore.com. website. At times a home may show ACTIVE in your MLS but be in a PENDING status with HUD. Your NAID certified Realtor should investigate this.
- HUD typically makes its initial offerings to Owner Occupants not investors. Having knowledge of this helps you as a buyer in not being concerned with investor bidding. If a property has not sold after some undetermined time-line by HUD they may elect to then make the home available to investor type buyers.
There is plenty more to learn about how to buy a HUD home here in New Mexico so come back for part 2 of the series where I will discuss the bidding process, appraised values and inspections.
Here is the full unbroken series at AlbuquerqueHomes.com on How to Buy A HUD Home in New Mexico.