HUD homes are properties that were financed and insured with an FHA loan. The loan went bad and now HUD (US Government) owns the house and has to liquidate it. In the past 6 months, HUD home pricing has come back in line with our declining market. Many of these homes are even priced below market value. The great thing about HUD Homes is that the first 10 days a HUD Home is listed it is only available to “Owner Occupants,” in other words, a buyer that is going to live in the house. This is important because many owner occupant home buyers are losing buying opportunities to cash investors. With HUD Homes, investors are sidelined for 10 days; when the house does not sell to an owner occupant, in the first 10 days, only then will it become available to all bidders. How can you buy a HUD home?
1.) You need to qualify for a loan. FHA, VA, Conventional, or have cash funding.
2.) Find an approved HUD Broker like me…Marc Reno, Bauer-Reno & Asso.
3.) Be ready to bid, the aggressively priced homes sell in the first 10 days.
4.) Have a deposit: $500 for bids 50,000 or less, $1,000 for bids over $50,000.
In some states, including Michigan, HUD is also offering special $100.00 down FHA financing for qualified buyers and qualified properties. They are also offering an additional $2,500 closing cost/repair allowance for owner occupant bidders on sales over $25,000. With the HUD incentives, the Federal Tax Credit, and under market valued homes…I see this time as an historic opportunity for home buyers! To search for HUD Homes in Southeastern Michigan visit: www.BauerReno.com
Marc Reno, HUD Approved Broker
Bauer-Reno & Associates Real Estate LLC
3849 Pine Grove Rd. Fort Gratiot, MI 48059
Phone: 810.966.1200 Fax: 810.966.1211