Hi Donna, What is a HUD Home?
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.)