How to Buy a HUD Home in New Mexico (a series)

Real Estate Broker/Owner with Albuquerque Homes Realty *

How to Buy a HUD Home in New Mexico is a series designed to educate future home buyers to the intricacies of purchasing a New Mexico HUD owned home.  

How to Buy a HUD Home in New MexicoMany of todays savvy home buyers are considering the different opportunities available from Short Sales, Bank Owned Homes (Foreclosures) and the like.  One of those options is HUD homes.  A HUD (Housing and Urban Development) home simply means a home that has gone through the foreclosure process on an FHA insured mortgage and is now owned by the US federal government or HUD.

Buyers need to understand the that all real estate transactions are not created equal and todays buyer needs to be familiar with the complexities and differences in each.  Often times these differences may dictate the type of loan you can acquire, who pays certain closing cost or if there is a home warranty as an example.  Here are the first four key components of How to Buy a HUD Home in New Mexico.

  • Get Prequalified FIRST.  There is no point in attempting a bid on a HUD owned property if you are not either pre-qualified with a supporting letter from your lender or you have proof of funds for a cash purchase. HUD will not consider offers without this!


  • Hire a New Mexico Realtor that has been certified by HUD to handle a New Mexico HUD Home transaction.  The agent must have a current NAID number to act on your behalf.  You MUST have an agent representing you.  A small percentage of New Mexico agents/Realtors have the necessary NAID.  I am one of those few.



  • HUD typically makes its initial offerings to Owner Occupants not investors.  Having knowledge of this helps you as a buyer in not being concerned with investor bidding.  If a property has not sold after some undetermined time-line by HUD they may elect to then make the home available to investor type buyers. 

There is plenty more to learn about how to buy a HUD home here in New Mexico so come back for part 2 of the series where I will discuss the bidding process, appraised values and inspections.

Here is the full unbroken series at on How to Buy A HUD Home in New Mexico.

Part 2 How to Buy a HUD Home in New Mexico

Part 3 How to Buy a HUD Home in New Mexico

Part 4 How to Buy a HUD Home in New Mexico

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John McCormack    Owner/Managing Broker,  e-PRO

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Scott Godzyk
Godzyk Real Estate Services - Manchester, NH
One of Manchester NH's Leading Agents

Good Morning John, Very nice instructions on how to buy a HUD home. Have a great Monday.

Aug 27, 2012 12:18 AM #22
Ty Carey
Our Father's Houses Realty - Easley, SC

Good Morning, What a great article! I want to write simular article in SC. Great idea for a Monday morning. Thanks,

Aug 27, 2012 12:19 AM #23
Doug Dawes
Keller Williams Realty - Topsfield, MA - Georgetown, MA
Your Personal Realtor®

Thanks for this post John. HUD homes are a viable way to purchase Real Estate and you are right when you write "Buyers need to understand the that all real estate transactions are not created equal and todays buyer needs to be familiar with the complexities and differences in each.  Often times these differences may dictate the type of loan you can acquire, who pays certain closing cost or if there is a home warranty as an example"

Good post

Aug 27, 2012 12:46 AM #24
Joan Cox
Metro Brokers - House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

John, buying a HUD home has become a bit more cumbersome now on our part, but buyers are still able to get a deal with HUD!   Great post on the process!

Aug 27, 2012 12:53 AM #25
Jon Kolsky
Kolsky Realty & Management - Long Beach, CA
Licensed California Real Estate Broker

Currently I work with a church that helps needy families secure & own HUD homes, the concept of homes made affordable is a great concept. Just like the families need assistance from the church, individuals need help acquiring HUD homes, and you are the perfect person to provide it. Between information and service, you-da man...


Aug 27, 2012 01:33 AM #26
Jon Eliason
EXIT Realty Advantage Pagosa, Pagosa Springs, Colorado - Pagosa Springs, CO

John ~ You ROCK! Having an Agent in New Mexico that has his ducks in row is definitely beneficial to the HUD home buyers and they couldn't have a better Realtor®, like you, on their side.   :)

Aug 27, 2012 02:03 AM #27
Pamela Smith
Award Realty - Sun City West, AZ
Sun City West, Corte Bella, Sun City Grand


Great information, once again.  You always do your best for your clients.

Aug 27, 2012 02:57 AM #28
Laura Allen, Lake Tahoe - Truckee Real Estate for Sale
Coldwell Banker, Tahoe City, CA (530) 414-1260 - Tahoe City, CA
Tahoe Real Estate Agent Helping Buyers and Sellers

John - Great information for any buyer that is looking to buy a HUD home and get a great deal!

Aug 27, 2012 06:32 AM #29
Respect Realty LLC
Respect Realty LLC - Milwaukie, OR
Brokers - Oregon / SW Washington Real Estate

As a buyer i t is important to work with an experienced HUD agent as unlike a lot of homes, HUD homes require special contracts and have to be signed up with HUD. I've seen many buyers lose out on HUD homes because they went with an agent that had never done one before.

Aug 27, 2012 09:42 AM #30
Nick T Pappas
Assoc. Broker/Broker ABR, CRS, SFR, e-Pro, @Homes Realty Group, @HomesBirmingham & Providence Property Mgmnt, LLC Hun... - Huntsville, AL
Madison & Huntsville Alabama Real Estate Resource
John, outstanding first of the series describing the purchase process of HUD properties...I'll be back for the second installment...suggested!
Aug 27, 2012 11:47 AM #31
Tatyana Makarov
Coldwell Banker Residential Brokerage - South Windsor, CT
Your Greater Hartford Area Realtor

Great, very educational post, John.

I am sure any buyer will appreciate your help.

Have a great week.

Aug 27, 2012 12:36 PM #32
Andrea Bedard
Thompson Company, REALTORS® - Silver Spring, MD
M.A.; REALTOR® Silver Spring, MD and beyond

Hi John, how has this not been featured yet? This is some great info for any Albuquerque home buyer interested in purchasing a HUD home. It's important that they work with a knowledgeable and HUD certified agent - I hope they choose YOU.

Aug 27, 2012 01:07 PM #33
William Johnson
RE/MAX Associates - La Jolla, CA
San Diego Real Estate Voice, GRI CRS e-Pro CDPE
Hi John, This is an excellent series and I am also suggesting this one as the series is excellent advise for anyone, anywhere looking to Buy a HUD home.
Aug 27, 2012 02:38 PM #34
Toni Weidman
Sailwinds Realty - Trinity, FL
26 Years Selling Homes in New Port Richey, FL

HUD homes are usually excellent buys, John. Great idea for a series and good job. Suggested.

Aug 27, 2012 09:54 PM #35
Rebecca Gaujot, Realtor®
Perry Wellington Realty, Adam Conrad, Broker - Lewisburg, WV
Lewisburg WV, the go to agent for all real estate

John, I don't have a NAID number, but there is one Realtor in our office that does and handles HUD homes.

Aug 28, 2012 02:08 AM #36
Nancy Laswick
United Real Estate - Phoenix, AZ
Your REALTOR® For The Valley Of The Sun

John, this is going to be an excellent series. There are still some great deals available with HUD homes. Suggested.

Aug 28, 2012 05:25 AM #37
Morgan Evans
Douglas Elliman Real Estate - Manhattan, NY

This is a great tutorial as I'm positive there are many buyers looking to find out how to buy a hud home in new mexico.

Aug 28, 2012 11:19 AM #38
C. Lloyd McKenzie
Albuquerque, NM
Living Albuquerque

HUD Homes provide a opportunities for both regular homebuyers and investors. Having said that I think the recent changes were a step in the wrong direction.  HUD should move toward simplifying the process not making it more cumbersome

Aug 28, 2012 02:31 PM #39
John McCormack
Albuquerque Homes Realty * - Albuquerque, NM, Albuquerque Homes Realty

Thanks to each of you for your support and input on this first post of a  series on How to Buy a HUD Home in New Mexico.  I hope you will find this real estate series helpful.  

If you’re considering the purchase of a HUD home in the Albuquerque or Rio Rancho New Mexico areas I hope you contact me.  Let’s talk.  I look forward to  assisting you in purchasing your New Mexico HUD home.

How to Buy a HUD Home in New Mexico, albuquerque, rio rancho, nm, john mccormack, mccormick, albuquerque homes realty, realtor


Aug 28, 2012 03:01 PM #40
Kasey & John Boles
Jon Gosche Real Estate, LLC - - Boise, ID
Boise & Meridian, ID Ada/Canyon/Gem/Boise Counties

HUD transactions are such a different beast.  It is definitely important to have an agent who knows what he/she is doing.  John is that man in New Mexico!  This series is great. -Kasey

Sep 03, 2012 03:18 PM #41
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