Learning More About HUD- By: Roby Hicks
The Housing and Urban Development or HUD is an agency in the US formed since 1965. Since then their roles have evolved. Now, they pay more attention to housing and then promotion of home ownership. Today, cities have claimed the responsibilities of urban planning. They also help in the lending processes as well as in providing help to individuals who wish to own a home but will not qualify to a regular loan.
Many think that the HUD is a lending company. This is probably because of the services it provides. However, it does not lend any amount. Instead, approves the lenders and provide them with guarantees and additional aid. The agency does not only help the lenders though. They also assist potential homeowners. As mentioned earlier, they help those with low incomes qualify for a loan. In addition to that, they also conduct counseling. They also support associations that provide assistance related to credit issues.
All real estate agents are aware of the roles and responsibilities of the HUD. You can ask your agent about their other services. One important thing you need to remember is that you have to work with an agent if you wish to receive assistance from the HUD. This is to better facilitate your needs and your requirements in order to qualify.
HUD wants to promote home ownership. This is why they want more people to have access to the affordable housing. In order to do that, they want to eliminate discrimination. In addition to that, they also tackle issues of insurance and security.
HUD and FHA work together. As mentioned earlier, they provide aid to those with low income. Aside from helping them acquire a home, they also offer subsidies for rental properties. However, who can qualify for these? People who qualify for this should be earning less than a certain amount.
Purchasing a foreclosed HUD property:
Before you decide to purchase a foreclosed HUD property, you should first understand that factors involved in the foreclosure. The FHA insures these homes. When they were foreclosed, the FHA paid the remaining balance of the loan and in turn, they take ownership of the property, which is then turned over to the HUD.
You cannot just make an offer once you find a home you wish to buy. The HUD conducts an auction. You can find the list of properties to be auctioned in the HUD site. You will need to work with an agent who will help you take part in the auction. A sealed bidding will be made and the appraised property is given to the highest bidder or the person that gives the highest net sales. The property will not be repaired as it is purchased as is.
The goal of the HUD is provide affordable housing to people who are below an income level. In addition to that, they also provide counseling and support to those who might be encountering problems with property owners. Finally, they also facilitate the auctioning of the HUD foreclosed homes.
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