Hi everyone, what's the general story on HUD homes? I came across a vacant property that turns out to be HUD owned (since last April). What is here general plan for those homes? I'm not clear on why they would continue to let it sit vacant and boarded up. Is there anyway I can get in on purchasing? I don't see any listings for it online or on the HUD sites.
Again, any feedback appreciated!
Could be any multitude of reasons why it is not on the market. Google the address and that should give you an idea as to if it has already been on the market. Active HUD listing will appear on HUDhomestore.com. Here is a recent thread on some HUD strategies
Thanks @Greg H. !
HUD homes are essentially FHA defaulted loans. When a property is purchased with an FHA loan FHA insures the bank. If the buyer defaults the bank files a claim, gets "saved" and the property becomes a HUD home. HUD will not sell a home with title issues. Most of the time they will try and clear any title discrepancies before they list them.
It can still take a very long time (just with other foreclosure processes) for the property to be deemed ready to list. Even after the legal process the properties need to get cleaned out (personal property gets hauled out), property needs to get secured (re-keyed/boarded up, any safety issues need to get addressed (railings installed on stairs if missing, holes in floors covered up etc.).
Generally their plan is to most always sell it. They have lately started offering some on auction.com before they list them with the brokerages to try and save on commission. Otherwise wait till it's up on the hudhomestore! :)
Originally posted by Account Closed:
Is there anyway I can get in on purchasing?
To purchase a HUD property you need to find an agent that works w/ an NAID registered broker to submit your bids. You can't submit an offer on your own. Also be prepared for the following: When you win a bid you're EMD usually has to be delivered in 24 to 48 hours & it's non-refundable if you're an investor.