How to Buy HUD Homes - California - Riverside County: Hemet, Murrieta, Temecula, Lake Elsinore, Perris, Corona, Moreno Valley
What is a HUD home? When someone with a mortgage that was insured by the U.S. Department of Housing and Urban Development ("HUD") and cannot make the payments, four things happen:
1. The lender takes the home back (usually in California by a nonjudicial procedure),
2. HUD pays the lender what is owed,
3. HUD takes over ownership of the home, and then
4. HUD then sells this "HUD home" through a marketing contractor such as HUD PEMCO for California.
Who can buy HUD homes once they are on the market for sale? Anyone who can qualify for a mortgage on the property or who can pay cash for it is allowed to buy a HUD home for sale. There are several procedural rules to follow, outlined on the HUD PEMCO website FAQ page.
In the spirit of supporting owner-occupancy and building communities, HUD homes also have a "Good Neighbor Next Door" program for teachers, officers, firefighters and emergency medical technicians to purchase homes at half the listed price on the HUD website. CAUTION, though: this is if, and only if, the home is specifically in that area that the person works. So for example, a teacher can bid half of the listed price if the home is in the neighborhood which is assigned to the school where the teacher works.
To buy a HUD home, the buyer must use an agent who is registered with HUD to sell homes in California, such as Sand to Sea Properties which is located in Temecula and has agents that cover Riverside County, including Hemet, Murrieta, Temecula, Lake Elsinore, Perris, Corona and Moreno Valley.
HUD encourages owner-occupant purchasers of these HUD homes including in California's Riverside county, the cities of Hemet, Murrieta, Temecula, Lake Elsinore, Perris, Corona and Moreno Valley. In California, HUD homes are for sale, therefore, to owner-occupant bidders first - and owner-occupant bidders only - for a period of 10 days. Bids placed by owner-occupants during those 10 days are considered as though they were submitted simultaneously. If there are no acceptable owner-occupant bids on the 11th day, then bidding on the HUD home is available to all purchasers on a daily basis with no priority given to owner-occupants.
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