Why you Should Consider a HUD Home

 

Who isn’t looking for a great deal on a house? HUD homes, while different than traditional homes, can be a great value – especially in particularly hot markets like Denver. In simple terms, a HUD home is a place owned by the U.S. Department of Housing and Urban Development. Before a home becomes the property of HUD, it typically was owned by a regular homeowner who is no longer able to pay his or her monthly mortgage and ends up in foreclosure. When this happens, the home goes to HUD, which then must figure out how to sell the home and make back its money. That’s where you come in!

Benefits of HUD homes:
The government doesn’t want to own these foreclosed homes any longer than it needs to, so HUD homes are priced to move, often below market value. Plus, HUD offers special incentives to buyers in certain markets to sweeten the deal.

  • HUD “Good Neighbor” program offers HUD homes in revitalizing areas at a 50% discount to community workers (e.g., teachers, police officers, firefighters, and EMS personnel) who plan to live in the property for at least 36 months.
  • Low down-payment requirements or sales allowances you can use to pay closing costs or make repairs.
  • Another bonus for home buyers is that HUD gives preference to owner-occupants who intend to live in the home for at least one year, so odds are good you’ll beat out investors as well!

The greatest potential risk of a buying a HUD home is its condition. HUD homes are sold as is, so what you see is what you get. That’s why it’s so important to get a home inspection before you put your bid in.

Ready to check out HUD home offerings in the Denver area? Metrowest specializes in these types of sales and would be happy to help you start the process. Give us a shout today!

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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