What Is A Hud Home?

I get asked this question frequently.
HUD stands for, United States Department of Housing and Urban Development. This department oversees the Federal Housing Administration or (FHA). FHA provides federal insurance against default on home mortgages.

As we all know, If the mortgage payments are not made, the bank can take a property away using the forclosure process. If the mortgage payments are not made on an FHA insured home loan, the bank or mortgagee of the loan will foreclose. The bank or mortgagee will file an insurance claim to FHA for the unpaid loan balance. FHA will pay the bank or mortgagee. HUD will sell the home for FHA.

WHY A HUD HOME?
It is no secret that real estate is one of the best investments anyone can make. In the current economic conditions there are many home deals along with low interest rates and tax credits to give you the buyer a rare opportunity.

Like any real estate, HUD homes vary in condition. You might want a nice clean home or an investment fixer upper. With real estate there is something for all. Whether you purchase a HUD for yourself, as a rental, or a fix and flip, looking now offers some great opportunities.
LET ME SHOW YOU.
HOW DO YOU PURCHASE A HUD HOME?
CARE Real Estate is approved with HUD to submit offers on any HUD home.

Any qualified purchaser can bid on a HUD home.
Before making an offer, prospective buyers must have a letter from the lender stating that they have been pre-qualified (with a credit report performed and approved by the lender) for the loan amount that is needed. CARE Real Estate can arrange financing (wac) for you or you can use any lender you choose. Buyers paying cash must provide proof of available funds. Normally, earnest money required by HUD is $500 for purchases below $50k and $1,000 for purchases $50k and above and credited towards the purchase. (Right now HUD is offering a earnest money program where you can get a home for as little as $100.00. using FHA) They will pay up to 3% closing costs too! Call me for the details.
Not bad for the opportunity to bid on a home for below market value!
WHAT'S THE PROCESS?

Once we have you pre-qualified(wac)for your loan, we can start looking through the list of the many HUD homes available in Denver county, Arapahoe county, Jefferson county, Douglas, Adams county, Elbert county and Park county
CLICK HERE FOR MY WEEKLY UPDATED HUD LIST FOR COLORADO

These HUD homes are all vacant. We will show you the homes or you can take a drive by the properties first to see if you like the area. We can also watch an area you want to live in. Once you have decided on a home, we will submit an offer on behalf of you the buyer. HUD is looking for the highest net to HUD offer. HUD favors buyers who will live in the property over the investor by giving all owner occupants first bid. Only after a unexcepted or no bid auction by the owner occupants can the investors bid. The longer the property is available the better the price can get. But remember, others are making offers too so when deciding an offer, it should be realistic or the chances that HUD accepts your offer could be reduced. Who pays us? HUD does.

 

 

Edward (Ted) Peterson
CARE Real Estate
8101 East Belleview Ste F
Denver Co 80237
Office: (303)796-7000 ext 2756
Direct 303-668-5533
Fax: 303-268-2757
Tedrealtor@aol.com