Tips for Buying a HUD Home

 

Like other distressed properties, HUD homes can sometimes get a bad rap. But in reality, buying a HUD home can be a positive experience as well as a great deal! That is if you know what you’re in for. It’s important to understand facets of both the foreclosure process and the HUD Program.

If you’re not all that familiar with the process, you’re not alone. Check out the tips below learn more about buying a HUD home and what you should keep in mind along the way.

First, what is a HUD home? A program run by the U.S. Department of Housing and Urban Development, HUD homes have been acquired by the government due to foreclosure on an FHA-insured mortgage. To recoup the monetary loss on the foreclosure, HUD sells these homes to the public.

Can anyone buy a HUD home? Yes and no.

In the first 30 days after a HUD home becomes available only those with intent to live in it can bid. In other words, investors cannot bid on a HUD home in the first 30 days, which brings us to our first tip:

Be prepared to move quickly – this means getting prequalified for a mortgage so you can know your budget as well as finding a professional experienced in HUD home transactions who can help you navigate the process. Competition can be fierce, so it’s important to be prepared.

Be realistic about price.
When it comes to financing, be realistic about your price range. The importance of buying a home with feasible mortgage payments and interest rates has never been more important. It’s crucial to know just how much house you can really afford.

If you think a HUD home could be the right choice for you, contact Metrowest today. We specialize in these types of sales and would love to help you start the process!

Ken Blevins

About Ken Blevins

Ken Blevins, CEO of Metrowest Real Estate Services, is a veteran in mortgage and default servicing with more than 24 years of experience in collections, foreclosure/bankruptcy, loss mitigation and real estate disposition (REO). Blevins was an original co-founder of Metrowest in 2003, a Real Estate Brokerage and Services Company focused on the resale, recovery and liquidation of distressed real estate in Denver, Colorado and surrounding metros. Blevins assumed the role of CEO in January 2014 and provides strategic direction and has management accountability for the day-to-day operations. Under his direction, Blevins drives all default management operations to maximize asset value recovery and reduce loss severity through a strategy focused on customer service and state of the art technology. Blevins has 18 years of direct operational experience in all facets of REO Asset Management having managed large national REO Disposition contracts for Fannie Mae, Freddie Mac, Wells Fargo, JP Morgan Chase, CitiFinancial, GMAC Mortgage and other various financial institutions. Blevins specialties include REO asset management, real estate investment, bulk REO acquisitions and distressed asset recovery and liquidation, and he has directed the resolution and liquidation of over ten billion in institutionally-owned residential real estate.

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