Hi Donna, What is a HUD Home?

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Real Estate Agent with HomeSmart Realty Group
https://activerain.com/droplet/6vg

Hi Donna, What is a HUD Home?HUD Homes

Before I answer that question, let's talk about the types of sellers we are seeing in today's market:

Traditional Sellers ~ These are people who are selling their home because they want or need to, because the want or need to move.  There are many reasons for traditional sellers to sell: need a bigger or smaller house, want to be closer to family, job transfer, retirement, and many other reasons.

Short Sale Sellers ~ In many cases, these sellers are facing foreclosure.  The most common reasons are loss of a spouse, loss of a job (or less pay), and medical issues.  In some cases, the sellers may need to sell for traditional reasons, let's say a job relocation, and their home is not worth what they owe.  When a homeowner sells for less than what is owed, it's a SHORT SALE.  The sale is short what is owed to the lender.

Bank Owned/Lender Owned ~ Banks and lenders do not want to OWN property.  That's not what they do.  They lend money for consumers to buy homes and property.  After a foreclosure sale, if the property is not purchased, it goes back to the bank/lender.  Now the bank/lender becomes the seller. 

There are pros and cons to working with each type of seller, but that's another topic for another day.  (Keep an eye on this blog site for more information about this topic!)

So, back to the original question, What is a HUD Home? According to the www.HUD.gov website:

"A HUD 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."

(HUD is the U.S. Department of Housing and Urban Development.)

 

If you are interested in learning more about HUD Homes or scheduling a showing of a HUD Home in the Metro Denver area, please contact The Foerster Team at (720) 530-5553.

Watch this blog site for available HUD Homes in Douglas County and the surrounding areas and additional information regarding HUD Home programs and purchasing HUD Homes.

 

(Photo courtsy of Microsoft Office.)

Posted by

  

rich and donna

 

Donna Foerster

The Foerster Team

Cherry Creek Properties, LLC

REAL Market Knowledge. REAL Service. REAL Estate.

Serving Metro Denver

www.TheFoersterTeam.com

720-530-5554 (cell)

 

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Rainer
51,958
Cheryl Malone
Windermere Van Vleet - Medford, OR

Good info, straight and to the point.

Mar 05, 2011 04:19 PM #4
Rainer
366,437
John Michailidis
Real Property Management of Sarasota & Manatee - Sarasota, FL
Real Property Management of Sarasota & M

Great blog post! Thank you for sharing your thoughts with us!

Mar 05, 2011 04:26 PM #5
Rainmaker
665,171
Sharon & Bruce Walter
Keller Williams Realty Lafayette, IN - Lafayette, IN
West Lafayette homes for sale

Donna, we have had some very good buys in the Lafayette area with HUD homes.  Once the offer is accepted it will close and in a reasonable amount of time.  There are too many variables with all the different banks that handle foreclosures.  HUD homes are a very nice option for an owner occupant or investor to have!

Mar 05, 2011 04:41 PM #6
Ambassador
889,636
Lynn B. Friedman
Atlanta Homes ODAT Realty Call/Text 404-939-2727 Buckhead - Midtown - Westside -- and more ... - Atlanta, GA
Concierge Service for Our Atlanta Sellers & Buyers

Dear Donna,

Thanks for the Seller definitions and the HUD definition.

HUD has moved to the new "model" they call "M & M III".  Some regulations have changed but there are free* classes available for the changes.  Apparently, HUD now requires certain level participants to offer classes to selling agents.

Have a happy day -
Lynn

*Free in Atlanta anyway ...

Mar 05, 2011 05:17 PM #7
Rainmaker
1,010,557
Tim Lorenz
TIM LORENZ - Elite Home Sales Team - Mission Viejo, CA
949 874-2247

Not this time around but the last recession we had a lot of HUD homes in our area.  They were good bargains.

Mar 05, 2011 05:25 PM #8
Rainer
106,897
Elizabeth Byrne
Keller Williams Realty - Arlington, VA
Arlington Virginia Real Estate

Donna, thank you fro making the information about HUD so simple. I've never dealt with HUD property before, so this is a good introduction for me.

Mar 05, 2011 06:32 PM #9
Rainmaker
3,088,582
Lawrence "Larry" & Sheila Agranoff. Cell: 631-805-4400
The Top Team @ Charles Rutenberg Realty 255 Executive Dr, Plainview NY 11803 - Plainview, NY
Long Island Home and Condo Specialists

Donna, This was a great way to explain HUD to all, especially those looking to buy. Not only did you give the meaning of this type of sale, but you included how it might have happened ~ Nice!

Mar 06, 2011 12:22 AM #10
Rainmaker
1,267,143
Al & Peggy Cunningham, Brokers
RE/MAX West Realty Inc., Brokerage - Brampton, ON
Our Family Wants To Help Your Family!

Being from Canada, we always wonder what that HUD was all about! Thanks for clearing that up Donna! 

Mar 06, 2011 02:13 AM #11
Rainmaker
1,277,401
Donna Foerster
HomeSmart Realty Group - Parker, CO
Metro Denver Real Estate Agent

You make a good point Suzanne.  Generally speaking, HUD home sales are smooth.

Will~ In our market there is a good selection of HUD Homes available.

Good to see you Joni.  Miss you too.

Thank you Cheryl.  I am hoping that my series of posts regarding HUD homes will clear up any mysteries.

Hello John~ Thanks for stopping by.

Mar 06, 2011 07:50 AM #12
Rainmaker
1,277,401
Donna Foerster
HomeSmart Realty Group - Parker, CO
Metro Denver Real Estate Agent

I agree Sharon & Bruce, HUD Homes are a good buy for owner occupant (home owners) and investors.

Hello Lynn~ The process has changed a bit in Colorado too.  We went through the training at the end of last year.  So we are ready for our HUD home buyers!

Hi Tim~ What part of the country are you in?  Here in the Metro Denver area, there are many HUD homes available.

Mar 06, 2011 08:01 AM #13
Rainmaker
1,277,401
Donna Foerster
HomeSmart Realty Group - Parker, CO
Metro Denver Real Estate Agent

Glad I could introduction to the process Elizabeth

Thank you Larry & Shelia~ Understanding the different seller types helps buyers to better understand the buying process.

I learned something new too, Al & Peggy.  I didn't know that Canada didn't have HUD homes.  I'm sure there are many differences in our real estate businesses (and many similarities.)

Mar 06, 2011 08:36 AM #14
Rainmaker
152,063
Denise Roberts
New Colony Properties, LLC - Pinehurst, NC
e-PRO, REALTOR - Specializing in Pinehurst, NC Area

Donna - Excellent job on your HUD post!  Clear, short & sweet!  I like it!

Mar 06, 2011 10:53 AM #15
Rainmaker
448,421
Ruth Vogt
Fairway Independent Mortgage, LLS. Equal Housing Opportunity. Regulated by the Division of Real Estate. - Colorado Springs, CO
719-592-0855 Apply 24/7 www.ColoradoHomeLender.com

Very informative post, Donna. This is a great reference piece - good job!

Mar 06, 2011 01:58 PM #16
Rainmaker
1,277,401
Donna Foerster
HomeSmart Realty Group - Parker, CO
Metro Denver Real Estate Agent

Hello Denise~ Thank you.  "Bite size" pieces of information are much easier to "digest".

Thank you Ruth. Educated consumers are better able to make good choices during the home buying process.

Mar 06, 2011 02:13 PM #17
Rainer
243,539
Brenda Whitman, Live in Laramie Real Estate
Live in Laramie Real Estate, Laramie, Wyoming - Laramie, WY
Broker/Co-Owner, Laramie, Wyoming

Awesome explanation!  I was wanting to write a post anwering that very question.  Now, I think I'll just direct anyone who wants to know to this post!  Thanks!

Mar 13, 2011 12:06 PM #18
Rainmaker
1,277,401
Donna Foerster
HomeSmart Realty Group - Parker, CO
Metro Denver Real Estate Agent

Hi Brenda~  Too bad the "re-blog" button doesn't work.  It would certainly make life easier!  Thanks for the pat on the back!

Mar 13, 2011 12:44 PM #19
Rainer
212,055
Tim Peterson
Wisconsin Realtor Safety and Concealed Carry Classes - Madison, WI
Realtor Safety Training Classes

Hi Donna-great post explaining the differences. We do not have a lot of HUD homes here in Madison Wisconsin but they do go fast

May 31, 2011 04:25 PM #20
Rainmaker
1,277,401
Donna Foerster
HomeSmart Realty Group - Parker, CO
Metro Denver Real Estate Agent

Thank you Tim.  The right home, at the right price, will always sell fast!

Jun 01, 2011 04:25 AM #21
Rainmaker
504,688
Teral McDowell
Referral Patners LLC - Murphy, TX

I LIKE it! "A HUD 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."

Jun 24, 2012 01:54 PM #22
Rainmaker
1,277,401
Donna Foerster
HomeSmart Realty Group - Parker, CO
Metro Denver Real Estate Agent

Hi Teral~ I strongly believe in educating consumers.  Buying a HUD home is slightly different than purchasing a traditional resale home from a homeowner.  Anyone considering the purchase of a HUD home should be represented by a buyer's agent.

Jun 25, 2012 01:02 AM #23
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Rainmaker
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Donna Foerster

Metro Denver Real Estate Agent
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