Let’s start with a quick description of a HUD Home. Basically, it’s a home that has been foreclosed. What’s the difference between a HUD Home and any other foreclosed home (or bank owner or REO)? The only difference is that the loan for the previous owner was FHA insured. When there is an FHA loan on a house that has been foreclosed, it becomes a HUD home. HUD is a government agency, that handles the sale of “government owned” properties that have been foreclosed on, among other things.
In the past, HUD Homes have had a bad vibe associated with them. Nowadays, there are homes that are in pretty good shape, some even newer that are for sale and yes, there are still some beaters that need TLC.
Anyone can search for HUD Homes that are for sale by going to the HUD Home Store website. On the home page, you can select the state, county, city and other criteria that you’re interested in. If there are homes available in your area, a list will appear with basic information on the home.
There is certain protocol that needs to be followed to purchase a HUD home. First, you need to work with a real estate broker that is APPROVED to bid on HUD Homes. By the way, I happen to be one of those brokers. Next, you want to make sure you are working with a lender who is well versed in HUD homes and has the patients for it as they can be a bit tricky and very time consuming. Following is a list of things that are good to know:
Bedrooms: 2 Baths 1.5
It’s been on the market 5 days, so they will review any bids received between the list date and day 10 in five more days.
If no bids are accepted at that time, any new bids will be reviewed daily.
If you’d like more information on HUD Homes or any other properties for sale in Orange County, you can call 714-396-2819.