Janna Rankin Scharf, GRI, PMN, SFR, CLHMS - Coeur d'Alene Idaho Real Estate
First of all, what is HUD?
HUD is the US Department of Housing and Urban Development.
What is a HUD home?
It is a home for sale 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, and are often listed with designated HUD agents in our MLS. 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 to all HUD homes for sale 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
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