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WHAT YOU NEED TO KNOW
A down-and dirty little synopsis of HUD
rules....
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Anyone who has the cash or can qualify
for a mortgage can bid on a HUD home
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Buyers who will be financing must have
a pre-approval letter from a HUD approved lender.
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Owner-occupants get preference during
the first ten days of the bid period.
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Bids must be submitted through a HUD
approved broker of your choice. If you don't already have a HUD approved
broker, Treasure Coast Foreclosed Homes will be glad to serve you.
Q. What is a "HUD Home"?
The Federal Housing Administration (FHA) is the organization of the U.S.
Department of Housing and Urban Development (HUD) that insures certain mortgage
loans for lenders. If the lender forecloses on the loan,
FHA repays the balance of the loan to the lender and the title to the home
reverts to HUD. HUD then sells these homes at market
value.
Q: How do HUD's Management and
Marketing (M&M) Contractors acquire the house?
HUD has assigned the responsibility to maintain and sell the homes to Management
and Marketing (M&M) Contractors. They are responsible for the upkeep of
the property and the required documentation associated with marketing and
selling the homes according to HUD policies and guidelines set forth in the
contract with the federal government. The M&M contractors act on HUD's
behalf, but HUD retains the title to the home until it is sold.
Q: Who can buy a HUD home? Are they
only available for low-income buyers?
All HUD homes are offered without regard to race, color, religion, sex, national
origin, handicap, or familial status. Anyone who is pre-qualified for a
mortgage loan may offer to purchase a HUD home. These homes are not exclusively for
low-income buyers, but most are regarded as affordable for low to
moderate-income purchasers within the market areas where they are located. There is an initial period when only
owner-occupants are allowed to purchase, after which time investors may also
buy. No employee, relative, or business
relation of the M&M Contractor or its subcontractors may purchase any of these
properties.
Q: How do I start the process of
buying a HUD home?
Start by finding a real estate agent in the area where you are interested who
works for a HUD-registered broker.
We have been selling HUD homes in
the Treasure Coast Area for over 25 years Be sure to ask if his or her broker is
registered with HUD to sell these homes. These agents can help you get
pre-qualified for a loan, show the available homes to you, write a Sales
Contract for you to sign and place an offer by electronic bid on your behalf.
Q: Is it possible to get a list of
the properties in my area?
You may keep informed about available HUD homes by viewing the property listings
on this Web site.
Q: Does HUD make repairs on
HUD-owned homes that are in poor condition?
HUD homes are sold "as is," without warranty. That means HUD generally will not make
repairs except to preserve and protect the property or to eliminate a major
safety issue. Known defects are reflected in the price and stated in the listing
on the Website, as well as on the Property Condition Summary sheet.
Q: How do I make an offer to
purchase and what happens after I place a bid?
Your HUD-registered real estate agent or broker must place an offer in the form
of an electronic bid on your behalf. If your bid offers the highest price,
net of closing costs and commissions, above the minimum acceptable price, then
the bid will be acknowledged, assuming all other considerations are met. The bid will be the acknowledged bid
listed in "Bid Results," allowing your agent or broker 48 hours to deliver a
complete contract package to the appropriate Regional Office the complete and
signed Sales Contract package with all addenda, a copy of the loan
pre-qualification letter, and your earnest money check. Only when a complete and correct
contract package is submitted and received on time will the M&M Contractor sign
on behalf of HUD as Seller. Otherwise, your bid may be cancelled
and the property may be offered to the next highest acceptable bidder or it may
be placed back on the market for others to bid.
Q: Can I buy a HUD home as an
investment property?
Yes, but owner-occupant purchasers are given priority for an initial period of
time that the house is on the market. These are persons who will affirm in
writing that they have not purchased a HUD-owned property in the last two years
and they will live in the home as their primary residence for at least one year. After the initial listing period,
investors may purchase the houses for resale or for rental.
Treasure Coast Foreclosed Homes
772-332-7373
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