There may be a few more hoops to jump if you are after government foreclosure homes, but they will all be worth it. First off, the government gives priority to owner-occupiers as the goal is to provide housing to more people, especially those who may need some help in owning one. If a government property is to be auctioned off, the competition may be lighter as real estate companies or their representatives are not really encouraged to participate. Apart from their already low price, the government also provides a slew of tax breaks and incentives to stimulate purchase.
Buying Government Foreclosures
A visit to the official web address of the U.S. Department of Housing and Urban Development or the HUD will bring you to a host of government foreclosure homes for sale. Most licensed agents are capable of representing you in your purchase of an HUD foreclosure. You cannot do without an agent as the HUD only deals with them.
Make sure you conduct a thorough inspection of the property. Take a licensed inspector with you to have a clear picture of the amount you will need to put up for repairs and renovation. Government foreclosures are sold in their present condition and while they are priced parallel to their present state, you still need to determine if you are indeed getting a good bargain.
Making a bid for the property is different from other foreclosure sale. Bids are conveyed by agents or representatives within a prescribed period of time. These bids will be sealed and revealed only once the prescribed time is up. Your bid must be accompanied by earnest money.
The person with the highest bid gets the home and the government will inform the agent who in turn will relay the information to the buyer. The time to settle can be anywhere from a month or two. During this time buyers are required to comply with all the necessary requirements to compete their purchase. Failure to settle within the given period would mean a forfeiture of the deposit and the resale of the property to other prospective buyers. Government foreclosure homes offer a great option for middle- to low-income families dreaming of living in their own property.
John Cutts has been educated in the finer points of the foreclosure market over 5 years.
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