The approach to HUD houses for sale is slightly different than other types of foreclosures. These properties were bought using Federal Housing Authority (FHA) home loans, financed by banks and insured by the Federal Housing Administration, which is an office under the Housing and Urban Development (HUD).
When debtors fail to meet their FHA mortgage obligations the banks that provided the financing will commence the foreclosure proceedings. They will also submit a mortgage insurance claim to the FHA and turn over the property to the government agency. The FHA will in turn transfer the property to the HUD and the department will take charge of selling the home to buyers or property investors.
Where are These HUD houses for sale and How Can One Buy Them?
Interested buyers can check out the official Web site of the HUD for a list of these homes. The HUD list is maintained and kept up to date plus it has a powerful search engine that can refine your search to yield only the properties that will suit your needs. If you have spotted the home you want you can check out the property manager or the HUD-appointed broker to make your formal offer through your own real estate agent. HUD homes cannot be purchased directly from the agency in the same way that the agency will not deal directly with the buyer. Your agent will do the bidding for you and will be notified by HUD if your bid was successful.
If you do win the bidding for HUD houses for sale, you have 30 to 60 days to close the deal and buy the property and the HUD will take care of the fees your agent will charge. HUD only welcomes buyers who intend to live on the property or what is know as owner-occupied properties. Bids of investors are given a low priority and only gets considered when the property remains unsold for sometime.
John Cutts has been educated in the finer points of the foreclosure market over 5 years.