What is a HUD Home?
The U.S. Department of Housing and Urban Development (HUD) is the agency that oversees federal housing agencies and programs including the Federal Housing Administration (FHA) which insures home loans. A HUD Home is a one-to-four unit single-family residence, condominium or townhome that has been conveyed to HUD by the lender as a result of foreclosure when the borrower defaults on the FHA-insured loan. HUD in turn sells the property at “AS IS” market value based on a recent appraisal as quickly as possible through an Asset Manager (AM) Contractor such as PEMCO, LTD. HUD Homes vary in price, location, and condition. Some are move-in ready condition and others are not.
Who can buy a HUD Home?
Anyone with a valid Tax ID (*SSN or Employer Federal Tax ID) issued in the United States can buy a HUD home. Potential buyers must qualify for a mortgage or pay cash to buy a HUD home. Buyers must have a pre-qualification letter from a certified lender, or proof of funds in the amount of, or greater than the gross purchase price of the property.
Where can I find a HUD home?
HUD homes are listed on the HUDHomestore website and in the local Multiple Listing Service (MLS).
How can I view a HUD Home?
All buyers MUST be accompanied by a broker or agent when viewing any HUD Home listed for sale. Brokers and agents must also accompany any individual performing services such as home inspections, appraisals, or certifications.
Do I need a realtor to place a bid for me?
Yes, please contact a registered HUD broker or agent to place a bid on a property and to access the home listed for sale. To lookup a broker/agent in your area, visit the HUDHomestore website.
Do owner-occupants have a priority in bidding?
Yes, there are owner-occupant priority bidding periods set aside throughout the bid process.
Exclusive Listing Period – IN and IE
There is a 30 day exclusive listing period for owner occupants for IN (insured) and IE (insured with escrow) properties. All bids received in the first 10 days are treated as having been received simultaneously and if no winning bid is received by the 10th day, the bids are reviewed daily for the remainder of the exclusive listing period (up to 20 days) for owner occupant purchasers only.
Exclusive Listing Period - UI
There is 5 day exclusive listing period for owner occupants for UI (uninsured) properties. All bids received in the first 5 days are treated as having been received simultaneously and if no winning bid is received by the 5th day, the property is made available to all bidders.
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