It's true. Most HUD Foreclosure properties are currently available for purchase with only a $100 down payment if financed with an FHA loan. So, what is a HUD Foreclosure and how do you buy one?
They are foreclosed properties insured by the US Department of Housing and Urban Development which are sold through an online bid process. They are put on the market for an initial 10 day bid period where only "owner occupants" can place bids. They are listed on Fridays with bids accepted for the next 10 days. The winner is announced on the following Monday. If no one bids, or there are no bids acceptable to HUD within that initial bid period, then it is offered to anyone, including investors on a daily bid basis until sold or taken off the market for evaluation or price reduction.
Short Sales, Bank Owned and HUD properties all offer good financial values in the Indianapolis market place. Many HUD properties are only a few years old and need only cosmetic updates, although they come in a wide variety of prices and conditions. It's very important to do your homework ahead of time and have the property inspected, as all homes are sold "as is" with no warranties. Be sure to work with a knowledgeable realtor that knows the local market. Great deals in the wrong location may not payoff when you get ready to sell.
Here are a few important highlights:
· Offers are submitted by a real estate broker via the internet
· $1000 earnest money & contracts must be to HUD within 48 hours of offer acceptance ($500 for homes with sales price less than $50,000) in the form of a money order, official bank check, or cashiers check
· Mortgage pre-approval to HUD within 48 hours of offer acceptance
· $100 down payment on most properties with FHA financing
· Property sold "as is"
· Must close within 45 days of offer acceptance
· Inspection must be completed within 15 days of offer acceptance
· HUD will pay up to 3% of purchase price for selected closing costs if requested in the accepted offer
· New HUD listings appear on Friday mornings
· For a list of available properties and more details visit: www.HMBIREO.com
Posted: Tuesday, April 07, 2009 3:17 PM by Tonda & Steve Hoagland
Unless otherwise noted, blogs are authored by Tonda or Steve Hoagland