How To Buy A HUD Home In Springfield Missouri
HUD homes are a popular choice among home buyers in Springfield, Ozark, and Nixa who are looking for an affordable home, want to buy a larger home at a price better than generally available on the open market, or for investors looking for rental properties. Since we are dealing with a government agency here, things can get a bit complicated but we're here to help you every step of the way.
What is a HUD home?
HUD homes are owned by the U.S. Department of Housing and Urban Development. They are sold strictly "AS IS", with no warranty. They will not make any repairs and also will not let buyers make any repairs before closing. Since they are sold “AS IS” they strongly recommend that you need to get a home inspection to find out about any repairs you will need to make if you buy the house.
When you are ready to search for homes you can look directly on this website: HUD Homes in Springfield Missouri
The first thing you need to check when making a bid is the “listing period”. These include one of four listing periods depending on the type of property, bid opening date, and the number of days its been on the market.
- Lottery- homes in a designated revitalization area
- Exclusive - no investor bidding allowed
- Extended - Open to all bidders
- Dollar - Government purchase only
What this means is that owner-occupants, non-profits and government agencies have the first opportunity to bid on the properties so if you are going to live in the home you get to bid before investors! After that listing period ends, if the property is still available, then investors can submit offers.
Once you search and find a property you like we would be glad to show it to you in person. But before we get the cart ahead of the horse, take a look at the checklist below of items below you will need to make an offer. You don’t want to waste your time looking before you have the needed items to make an offer. Most of these homes sell pretty quickly so you have to have all your ducks in a row.
You can't submit offers yourself; you need a HUD approved REALTOR® to submit the offer for you. HUD pays the real estate agent's fee and you should never be required to pay an agent a fee to submit an online bid for one of these homes. If someone tries to charge you, it’s a scam.
Checklist of items you will need to make an offer.
- Pre-approval letter from your lender (this is not the same as a pre-qualification letter) Confirm with your lender that you are making an offer on a HUD home and that they are OK with it. Some banks won’t loan on these properties since they are sold “as is”. Just make sure you and your lender discuss this upfront so everyone understands your situation.
- Earnest Money Deposit in the form of a cashier's check or money order. This may be 1% of the sales price, $500, $1000, or more depending on the price of the house. We will verify which amount is required and let you know. Earnest money is a deposit held in escrow by the title company that shows you are serious about buying the property.If your offer is accepted this money is applied to your costs. If the offer is rejected, the earnest money is returned. However, if you to not fulfill the contract the earnest money is forfeited.
- Original real estate contract prepared by us. This is the GSBOR contract and supplemental documents.
Once you find a home you want to make an offer on, we will submit the online bid within the "offer period". If your offer is accepted, the original contract is required to be sent to the asset manager within two business days. If they don’t receive it on time you risk them rejecting your bid and moving on to another offer! At the end of the "offer period" the offers are opened and the highest net reasonable offer is accepted.
We will be notified if your offer is accepted and let you know ASAP. It usually takes between 30-60 days to close so we need to work closely with your lender to avoid any delays and penalties. 
We hope you found this introduction of how to buy a HUD home in Springfield Missouri helpful. We are here to answer more detailed questions and help you with your home purchase!
Comments(0)