HUD Homes...The Best Deals???
Recently I have helped several clients purchase HUD Homes and my wife and I even bought one for ourselves. For those of you who do not know, a HUD Home is nothing more than a home that has been foreclosed on the was purchased or refinanced using an FHA mortgage. HUD Homes are very different from traditional sales. HUD Homes are bid on online and there are no counter offers. Either HUD takes your offer or they don't. In our case we bid for approximately 2 months for the home my wife and I bought. Was it worth the time? I suppose it was seeing this very home sold for $93,400 in 2004 and we were able to buy it for $37,400. Most people think that all foreclosures need a ton of work. Not always true. Our new home needed paint, carpet, a water heater and a tree cut down that all of the neighbors seemed to love but none were willing to take. In total, we will probably have $41,000 total into this home and in two years, we will walk away with a lot of money. I mean a lot of money somewhere in the neighborhood of $50,000. Just think about that. That is about $25,000 per year profit and we are living there. Add that to the fact that HUD will pay $2500 in closing costs for a buyer who plans to live in the home. HUD will only require a $100 down payment if the buyer uses an FHA mortgage and until next year you can get the first time home buyer credit for $7500. It only makes sense to at least look at HUD Homes.
I have come to be an expert on HUD Homes and would love to help anyone purchase their first HUD Home. For a free list of HUD Homes for sale in your area or for more information about HUD Homes feel free to email me at Lloyd.Reed@ERA.com or call me at 616-456-7500 x 114.
Lloyd Reed is the Associate Broker for ERA Network Real Estate located at 933 Leonard St. NW in Grand Rapids, Michigan.