HUD Homes – Save Thousands of $
Our real estate team can assist you in the easy process of buying a HUD Home! Click here for a free HUD photo list of all HUD Homes for sale in SW Washington.
What is a HUD Home? A HUD Home is a property with an FHA insured mortgage that has gone into default. The lender acquires the property, submits FHA insurance claim, and then conveys ownership to the U.S. Department of Housing and Urban Development (HUD). HUD will then sell the home through their Asset Manager (AM), BLB Resources. A HUD Home can be a single family residence (SFR), townhouse, condominium, mobile home or multiple family attached home up to 4 units.
Who can buy a HUD Home? HUD Homes may be purchased by any individual, company, HUD-approved non-profit organization, or government entity that can secure financing or pay cash for the property. Interested buyers must submit bids through a HUD-registered real estate agent.
There are two main types of HUD Home purchasers: Owner Occupants and Investors. An owner occupant buyer is a person who will live in the property as their primary residence for at least one year and has not purchased another HUD Home as an Owner Occupant within the past two years. Investor buyers are people who purchase the property as an investment or as a second home, or who do not qualify as an Owner Occupant.
How can I buy a HUD Home? If the buyer is financing the purchase of a HUD Home, HUD first requires the buyer to be pre-approved for a mortgage in an amount sufficient to purchase the property. If the buyer is paying cash, the buyer must provide verification of funds. Once the buyer has obtained a pre-approval or verification of funds, the buyer should find a HUD Registered Agent, who can help the buyer find an appropriate property and submit a bid on it. All buyers must submit their bids online through a registered real estate agent.
In typical real estate transactions, the buyer finds the home they like and their real estate agent presents their offer to the seller, who may counter the offer. The buyer and seller may negotiate until mutually agreeable terms are reached or until they reject the terms and move on. When purchasing a HUD Home, there are no negotiations between the buyer and seller. HUD Homes are sold by a sealed bidding process, where all interested buyers submit their best offer online and usually the highest netting bid (after all costs are paid) wins the sale.
HUD Homes are initially offered for owner occupant purchasers. Following the owner occupant priority period, unsold properties are available for all buyers, including investors. Bids can be submitted any day of the week, including weekends and holidays, and are opened for review the next business day following the bid deadline.