Can someone tell me what HUD owned property means and what types of hoops one would have to go through to purchase? Is this like a foreclosed/bank owned deal? Thanks.
It is simply an REO foreclosed on by fha. Similar to all other reo’s. With hud, no inspection/walk away clause for investor purchases.
@Wayne Brooks Hit on a lot of the major points. You would have to also work with an agent or broker that has a NAID which basically means they have the ability to submit bids for you electronically on the hudhomestore.com website. In CT at least there is still a lot of HUD inventory as compared to other states. Been involved in 9 HUD transactions so far in '17.
HUD will forfeit your deposit immediately if you fail to close -- title will be required to disburse it upon demand by HUD alone. Pay attention to deadlines.
If there is no walk-away clause, I assume you do all your inspections, etc. and are 100% sure you want it before putting in an offer? Do you pay $300-$500 on a home inspection before putting in the offer since you can't walk away? That sounds dangerous. Perhaps you're just knowledgeable enough you don't need a home inspection and can do it yourself? How does all this work? Though I feel like it's not for me. I'm working on my direct mailing plan right now. ;-)
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