With the Foreclosure rates soaring, "HUD" inventory is going to balloon. There will be many deals on the horizon. Hud homes offer the opportunity for buyers to bid on homes with built in equity. Hud Homes are generally purchased by the end user (person moving into the house). Although, investors are welcome on certain transactions.
1. THE BIDDING PROCESS:
Unlike an auction which is open, the bids on hud houses are done blindly without knowledge of any other offers. Hud releases a due date and each buyer submits their offer. Hud then chooses the highest and best offer. Owner occupants have the first right to bid, if the house is not sold, it is then released to investors.
2. DUE DILIGENCE.
Prior to bidding be sure to schedule an appointment to view the house. Do a thorough inspection and make notes on necessary repairs. You can not negotiate repairs. these homes are sold as is. If possible bring a contractor with you when walking through.
3. TIMING.
Acting quickly once you have found a house is imperative. Due to the bidding process and time frame allowed to submit paperwork, you must be decisive. Generally there is a two week window to prepare yourself. Remember you are not the only one looking to purchase that house.
4. YOUR "HUD BROKER".
Interview your Realtor and be sure they are well versed in the "HUD" process. You want a realtor that is continually notifying you about new homes and has knowledge of all necessary documentation. Your Hud Broker should provide you with comparables, enabling you to make a wise bid. Please feel free to post any questions you might have or contact us directly @ 718-981-3400.
HAPPY BIDDING..RON MOLCHO ,MANAGING BROKER @AMERICAN HOMES OF S.I.
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