What Is A Hud Home?
What is a HUD Home?
- An FHA insured mortgage that has gone into default
- Lender acquires property, submits FHA insurance claim, then conveys ownership to HUD
- A HUD Home can be a Single Family Residence (SFR), Townhome, Condominium or other type of residence up to 4 units
Who can buy a HUD Home?
- Individuals and investors, HUD-approved non-profit organizations or government entities
- Buyers who can secure a loan or pay cash to secure real estate
- Pre-qualification letter from lender or proof of cash funds is required
- Priority is given to owner occupants
How do I place a bid on a HUD home?
- A licensed Real Estate Agent will place a bid for an owner occupant or invstestor
- When a HUD Home is first listed for sale, priority is given to owner occupants, non-profit organizations and government entities. The duration of this Exclusive Listing Period will vary depending on the property’s FHA insurability.
How does HUD review bids?
- If the property is being sold as Insured (IN) or Insured with Escrow (IE), the Exclusive Listing Period is 30 days for owner-occupant buyers, non-profit organizations, and government entities. Bids received during the first 10 days are considered to be received simultaneously, and the initial bid review is on the 11th day of the Exclusive Listing Period. If there is no winning bid, bids continue to be reviewed on a daily basis until the 30-day period ends.
- If the property is Uninsured (UI) or Uninsured 203(k) eligible (UK), the Exclusive Listing Period is 5 days for owner-occupant buyers, non-profit organizations, and government entities. Bids received during these 5 days are considered as though they are received simultaneously, and are not opened until the 6th day of the Exclusive Listing Period.
What is the Extended Listing Period for HUD homes?
- After the Exclusive Listing Period has expired, unsold properties enter the Extended Listing Period. These properties are available for all purchasers, including investors, until an acceptable bid is submitted. Bids are reviewed the following business day.
How do I find a HUD Home?