Help Me Understand HUD

5 Replies

Ok, next installment of help me understand: HUD, particularly www.hudhomestore.com.

First, is it a good place to get good deals? It seems safer than a foreclosure. Is it?

Second, why are the eligible bidders sometimes limited to owner occupants, nonprofits, and government agencies? Once its listed that way, does it every change?

Any experience and guidance on HUD purchases is appreciated.

@Michael B. I am currently under contract on a HUD house.

The eligibility period open to OO, GA and non profits will be removed after a certain time period. This appears to be based on the insurability code of the property. The one I have was 5 days due to be UI (Uninsurable).

Another good thing is low EMD. I only needed $1000 for my house (over $50k purchase is $1000, under is $500 I believe).

I do not know if it is any "safer" but other than quick contract timeline once sent to me, so far it hasn't been a bad experience.

Your agent and attorney may need to be HUD registered. Both of mine did!

Thanks for the response @Brian Pulaski . There are some decent looking deals in my area from HUD. I guess I'm kind of wondering what's the catch?

@Michael B. if there ends up being a catch I will post up here. As it stands I am waiting on title search. The contract I got for the house was very specific on making certain you close within 30 days for investors. If there needs to be an extension there were fees and it needs to be HUD approved. The HUD homes in my area are listed on the MLS and get the same traffic as the other REO or distressed houses. If there are deals in your area, have your agent get you in and take a look.

Here is a thread that myself and others have posted some good info about the HUD process

https://www.biggerpockets.com/forums/20/topics/286...

One thing I cannot stress enough is using an agent, title company/attorney and loan officer that is familiar with the HUD process and this is a big reason many HUD deals fail to close

512-293-3885
Originally posted by @Greg H.:

Here is a thread that myself and others have posted some good info about the HUD process

https://www.biggerpockets.com/forums/20/topics/286...

One thing I cannot stress enough is using an agent, title company/attorney and loan officer that is familiar with the HUD process and this is a big reason many HUD deals fail to close

Thanks Greg! 

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