Atlanta HUD Homes and How to Find Them!

So, I'm often asked, what is a HUD home??
An Atlanta HUD (Housing Urban Development) home is a 1 to 4 unit residential property acquired by HUD as a result of a foreclosure action on an FHA-insured mortgage. HUD becomes the property owner and offers it for sale to recover the loss on the foreclosure claim.

The Good, The Bad and The Ugly about Atlanta HUD Homes:

The Good
You can get homes at a great discount when you work with HUD, they offer low down payment programs, great first-time buyers incentives and can turn out to be overall pretty good deals.

The Bad
You must be a licensed agent to submit offers to HUD, so you need to work with someone who understands HUD contracts (which can be very difficult to submit) and has access to HUD-specific keys. Also, since the properties are sold at such a discount, some of them will not qualify for FHA financing and will need considerable amount of work. Furthermore, if you're looking to move quick, that is not a word that HUD understands. They are busy and backed up, so expect to wait a while on just about everything involved in the process.

The Ugly
HUD homes do not allow an "inspection" contingency out and will rarely refund your earnest money if you do find something wrong with the property. The only way you have the possibility of getting "out" of a contract intact is if you are ineligible for financing. These are "AS IS" properties and you, as the buyer, accept all faults with the property.

So, where are all the HUD homes in Atlanta?
Unfortunately, the HUD website is very confusing and hard to follow. The best resource for searching HUD's online is www.hudpemco.com. From there, if you like a property and want to make an offer, you must contact a HUD Registered agent, such as myself, to help with the process. This doesn't cost you a thing!

Finally, Who can buy a HUD Home?
Almost anyone! If you have the cash or can qualify for a loan (subject to certain restrictions) you may buy a HUD Home. HUD Homes are initially offered to owner-occupant purchasers (people who are buying the home as their primary residence). Following the priority period for owner occupants, unsold properties are available to all buyers, including investors.

For any questions you have concerning HUD's or the HUD department, feel free to give me a call at 678.463.3173!