Did you know that HUD sells properties that you might want to buy? Click on the link to visit About HUD Homes and learn more about the HUD website.
HUD does two things, it offers low-down payment mortgage loans for homebuyers and it insures lenders of default on FHA insured loans. When a homeowner defaults on their FHA loan, the bank that owns the loan has a choice of taking their monies and giving the home back to HUD or to keep the home and sell it themselves. (Most of the time the bank takes their money and turns over the home.)
When HUD receives a home due to foreclosure, HUD wants to sell the home in 90 days or less and at the highest price possible. The homes are offer up "AS-IS" and the utilities will be off and the home winterized in the states where cold temperatures are common and could break water pipes and plumbing. These properties have a value from$0 to $200,700 (in Central Indiana). There is even a place on the site that will show you what HUD homes in specific areas have sold for in the past. (This might help you in making a bid decision.)
If you are looking at a home built before 1978 there is a high probability that the home may contain lead-base paint. To learn more Click here for HUD's "Healthy Homes and Lead Hazard Control" web page. This will explain the problems with lead-base paint and options you have to take care of it.
Anyone can purchase a HUD home. They can be purchased with cash or a mortgage (some restriction may apply). It is important to be pre-approved by a lender before you start the bidding process. The buyer will need to prove how they will be purchasing this home and proof will be sent with package after bid has been accepted.
You will need a real estate broker to submit your bid. There is quite a bit of paperwork involved with the process and several procedures that must be followed to make everything come together.
If you would like to see a HUD home in the Greater Indianapolis Area, please contact me to set an appointment. I can explain the process and check statistics regarding the location of the home you maybe interested in purchasing. Please visit my site http://cyndisloop4indyhomes.com for information about Indianaplis real estate.
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