How You Can Benefit
From HUD Foreclosures
Thousands of HUD home
foreclosures are available for you to consider buying, the result of
property owners not being able to make their FHA-insured mortgage
payments. The FHA (Federal Housing Authority), which is a branch of HUD
(Housing and Urban Development), does not actually loan mortgage money
to a home owner -- it only insures the loan. When the property owner
can no longer make the mortgage payments, HUD steps in and pays off the
mortgage. Now HUD owns the home and because this government agency
doesn’t want to own thousands of homes, the properties are
sold as HUD foreclosures.
What if you already own a home? May you still buy one of these
foreclosed homes? Of course! They are also available to investors.
However, the preference tends to be given to those seeking a home. FHA
insured loans are originally for one to four family homes, so all HUD
foreclosures are one to four family properties. They make excellent
investments.
When a home owner can’t make his mortgage payments, this also
indicates that little maintenance or few repairs have been made on the
property. HUD sells these foreclosed properties ‘as
is’ with no warranty, which makes these homes a
handy-man’s dream and also implies the potential for a
bargain price. By working with the consultants we have carefully
screened, you can obtain a complete property inspection so you know for
sure what you are buying.
Foreclosed properties are handled by participating real estate agents,
as the government doesn’t maintain selling staffs. The agent
will submit your bid on the foreclosed property during an
“Offer Period.” At the end of the period the bids
are opened, with the most reasonable bid obtaining the property. If the
property doesn’t sell during this initial period, then bids
can be placed until the home is sold.
The main ways to purchase one of these foreclosure homes are:
1) Cash
2) Obtaining a new FHA Insured Loan (usually doesn’t work for
investors)
3) Obtaining a new mortgage
An important point to understand is that not all foreclosure sites are
the same. That’s why we are proud to recommend the particular
ones that we have evaluated.
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