What to know when buying a HUD Home

HUD
There are many misconceptions about HUD homes, and more specifically, buying a HUD home. What type of property is this? It’s actually simpler than you may think, and these types of  homes can often be a great deal. HUD homes have been acquired by the government due to foreclosure on a FHA-insured mortgage. In order to try and get their money back on a foreclosure, HUD homes are available to the public to buy. If you’re considering purchasing a HUD property, check out the helpful tips below before you start the search.

  1. Be prepare to move fast
    Keep in mind that HUD homes are highly-sought after by investors looking to fix and flip or rent out a property. While you may be competing with investors with deep pockets, you can rest a little easier knowing that legally, HUD cannot accept bids on homes from real estate investors within the first 30 days that a home has hit the market. After that first month though, your competition will become greater, so if you find something you like, be prepared to submit an offer.
  2. Be realistic about what you can afford
    When it comes to financing, be realistic about your price range. The importance of buying a home with feasible mortgage payments and interest rates is your ultimate goal here. While there’s nothing wrong with window-shopping, make sure you secure financing sooner than later. In a worst-case scenario, buyers find the house of their dreams, only to lose it to another buyer because their loan hasn’t yet been approved.
  3. Find a pro
    HUD homes aren’t all that different than traditional home purchases, but they’re not exactly the same. Finding a real estate professional who’s experienced with these types of transactions is key – they’ll know the right questions to ask and the types of offers to submit on HUD homes in your area.

 

The bottom line is to let go of any negative ideas you might have about the HUD program. With due diligence and proactive research, HUD homes can be a great deal. Ready to start your search?

Visit Hud Home Store or give Metrowest a shout – we specialize in this 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.

Get More Real Estate Market Info... Subscribe Below!

Learn more about us and find other resources on buying investment properties with us. Like us, follow us, connect!

No comments yet.

Leave a Reply