HUD homes are homes that have been conveyed to the U.S. Department of Housing and Urban Development (HUD). The home was conveyed to HUD by the lender who acquired the home due to the previous home owner/borrower going into default.  The lender files an FHA insurance claim to be able to convey the home to HUD.

HUD homes can be purchased by just about anyone as long as they qualify for financing or are able to pay cash. There are different waiting periods for investor and owner-occupant purchasers. Second home(vacation home etc) buyers are not considered owner occupant buyers. An owner occupant is someone that will live in the home as their primary residence. Often times non owner occupant have to wait 30 days before they are able to bid on a HUD home. It will depend on the insured status of the home, but most homes fall in this category.

HUD homes are fairly easy to buy as long as you are working with an experienced agent that is familiar with selling HUD homes. The agent’s broker must be registered with HUD in order to sell HUD homes. An agent, such as myself, would show you homes and bid on your behalf. The initial bidding is done online and there will be documents/contract & addenda required to be signed by the buyer. Buyers using FHA financing have the opportunity to save money on appraisal and termite report if purchase is made the first 4 months that the home is listed.

Buying a HUD home can be a great opportunity that can save you lots of money! Contact me today to get more information on HUD homes. I can also provide you with a HUD Color Property List.