Buying HUD Homes in Michigan

Real Estate Broker/Owner with North Sky Realty LLC 6502410580

Buying HUD Homes in MichiganHUD homes (HUD stands for ‘Housing and Urban Development) are a different type of foreclosure, but a foreclosure nonetheless.  There is always strong interest in buying HUD homes in Michigan

I have people call me specifically to find out about only ‘HUD homes'.  When I ask them why, they usually answer with the most surprising responses.  ‘I have heard they are the best deals', ‘I heard they have programs where you can take over the payments' and ‘My uncle says he buys them all the time without a Realtor, so it is cheaper...' 

All of these myths are false.  Yes, buying HUD Homes in Michigan often result in good deals, but are they the best?  No, I have found that this is not always the case.  There can be great deals in buying HUD Homes in Michigan, but standard bank foreclosures are sometimes better.  It is a complete falsehood that buying HUD Homes in Michigan or anywhere can be done by ‘taking over the payments' and ‘without a Realtor'. Buying HUD Homes in Michigan

So let's clarify a few things here.  What exactly is a HUD Home?  Well, in simplicity it is a foreclosure on a government loan from the Federal Housing Authority (FHA).  The government is selling the home off through to recovers losses.  That is the simplest description I can offer for buying HUD Homes in Michigan, or anywhere. 

HUD contracts a local asset management company for each US State to sell off the homes, using their guidelines.  The homes are listed and sold per a specific system. The asset company contracts local Realtors to list the properties, and they do so per the guidelines of HUD.  

When HUD Homes in Michigan you must be accompanied by a licensed Realtor to see the home, and if you choose to write an offer, it must be done through a Realtor.  Like any foreclosure purchase, there are certain requirements that must be included with any offer. 

Buying HUD Homes in MichiganPeople buying HUD Homes in Michigan must provide proof of funds or proof of financing.  This is either an account statement or letter from a financial institution that substantiates that you either have the cash available in full or are approved to borrow the amount you are offering. 

You will also be required to present an earnest deposit.  This is per the current rule $500 for under $40,000, and $1000 for anything above $40,000.  Varying amounts of earnest deposits are not accepted.  You must also fill out a precise purchase contract, and accompany documents, through a Realtor, and the Realtor must also sign certain documents. 

The initial offer is done through the electronic bidding process online, which the Realtor enters for you.  This electronic bid requires that you provide your social security number, legal name, address, and the amount of your offer.  If the bid is accepted, then your Realtor is notified through email of your offers acceptance.  If it is not accepted, there is no email.  There is never a counter offer or negotiations with HUD. You offer is either accepted or it is not.Buying HUD Homes in Michigan

Currently if you are interested in buying HUD Homes in Michigan, Michaelson, Connor, & Boul, Inc. is the asset company that is in charge of selling the homes for the state. You can access their website to look at available HUD homes at:  

Be aware however, that their contract for HUD homes expires at the end of September 2010, and after that a two other new companies will be taking over the sale of HUD homes in Michigan.  You will need to contact your local Realtor for updates and changes to the new system of buying HUD homes in Michigan at that time. 

I hope this has helped dispel some of the mystery and myths about buying HUD homes in Michigan.  If you are interested in finding out more, you can contact me through my website at: and I would be happy to get you information on HUD homes in the area.

Buying HUD Homes in Michigan

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Robert L. Brown - Grand Rapids, MI
Grand Rapids Real Estate Bellabay Realty, West Mic

I've been selling these for some time. Very good post you have here Mr Delaware.

Sep 02, 2010 01:33 PM #1
Michael Delaware
North Sky Realty LLC - Battle Creek, MI

Thanks Robert.  Here is a tip for you.  MCB is coming to the end of their contract, and I heard the other day that they are accepting most any offer on properties they list, as they did not get awarded the new contract.  Two other companies did.  Therefore they are trying to get as many contracts in the pipeline as they can before their time runs out.

This 'changing of the guard' could result in some good deals for buyers as we approach the end of September.  So you might want to show more HUD homes this month, and make a few extra calls to investors.  I have already seen them accept super low offers where they would not have ordinarily done so before.  Not such a great long term situation for property values, but hopefully it will be only short lived.

Sep 03, 2010 01:47 AM #2
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