How To Buy a HUD Home|
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Frequently Asked Questions About HUD Homes
1.What is a "HUD Home" ?
Answer: HUD ( Department of Housing and Urban Development ). When someone with a HUD insured mortgage can't meet the payments, the lender forecloses on the home; HUD pays the lender what is owed; and HUD takes ownership of the home. Then they sell it at market value as quickly as possible.
2. Who can buy a HUD home?
Answer: Anyone! If you have the cash or can qualify for a mortgage, you can buy a HUD home.
3. Are HUD Homes meant for people with low incomes?
Answer: HUD homes range in price, but most are affordable for low- and moderate-income Americans.
4. Is it true I can get a HUD Home for a dollar?
Answer: No. HUD sells homes at market value - that means that the price is set based on the price of similar homes sold in the area.
5. If the HUD Home needs repairs, will HUD make them?
Answer: No. HUD Homes are sold "as-is," without warranty. That means that HUD will not pay to correct any problems. But even if a HUD Home needs fixing up - and not all of them do - it can be a real bargain! For example, HUD's asking price on the home will reflect the fact that the buyer will have to invest money to make improvements. HUD might offer special incentives such as an allowance to upgrade the property, a moving expense allowance, or a bonus for closing the sale early. And keep in mind that on most sales, the buyer can request HUD to pay all or a portion of the financing and closing costs. Your real estate agent will have details.
We encourage you to get the home professionally inspected before you make an offer. so you will know what repairs you may have to make BEFORE you submit your bid.
6. How do I buy a HUD home?
Answer: Contact our HUD Approved Specialist. A HUD Approved Real Estate Broker must submit your bid for you.
HUD requires a nonrefundable deposit with your bid. For property over $50,000. the deposit is $2,000, under $50,000. it is $500. For vacant land the required deposit is 1/2 half of the purchase price. Your deposit will only be refunded if your bid is not accepted by HUD.
Normally, HUD Homes are sold in an "Offer Period." At the end of the Offer Period, all offers are opened and, basically, the highest bid is accepted. If the home isn't sold in the initial Offer Period, you can submit a bid any business day. If your bid is acceptable to HUD, your real estate agent will be notified, usually within 24 hours.
7. If my bid is accepted, then what happens?
Answer: Your real estate agent will help you through the paperwork process. You'll be given a settlement date, normally within 45 days, where the transaction will occur.
When you buy a HUD Home, the selling agent's commissions are usually paid by HUD. HUD will pay a total sales commission of up to 5%.
8. How can I find out what HUD Homes are for sale?
Answer: Right here! HUD Sana Ana California Office. Please use your Back Button to return to this page.
9. How can I get a loan to buy a HUD Home?
Answer: HUD doesn't make loans directly. But they do have a number of mortgage insurance programs that could help you buy a home.
10. Can I buy a HUD Home as an investment?
Answer: Most HUD Homes are initially offered on a priority basis to owner occupant purchasers (people who are buying the home as their primary residence). Following the priority period, unsold properties are then available to all buyers, including investors.
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Carbon Creek Realty
100 Olinda Place
Brea Ca, 92823
Office: (714) 524-7688
FAX: (714) 524-9694