HUD Homes
HUD Homes
Interested in buying a HUD home? What is it? A HUD home is one that was previously financed using an FHA loan and then subsequently foreclosed upon. The process by which a buyer purchases a HUD property is a very controlled single-blind-bid process with preferences given to first time home buyers, teachers, policemen and fire fighters. The potential equity gain from a HUD purchase is tremendous and unlike buying other foreclosures where the process differs greatly from bank to bank, the HUD process is very structured and designed to protect the consumer. I'm a certified HUD broker with the experience needed to find the right opportunity for you. Click on the following link to view available homes and ask me about special programs available for teachers, policemen & fire fighters.
Why is a HUD Home GREAT for a 1st Time Buyer or someone wanting a "NEW" look???
The single-word answer is "203(k)". Here's what I'm talking about: Many people are averse to buying a HUD foreclosure because often the homes are missing carpet, appliances, and may even have holes punched in the walls. Through the 203(k) Streamline program, qualifying homes (most qualify) allow the buyer to receive a home improvement loan for as much as $35,000 to spend on improvements, including brand new appliances of their choice, and then add the amount of the home improvement loan to the mortgage. This allows the home buyer to take care of all the problems up front and yet put the entire expense into the 30 year mortgage. Where else can you get a 30 year loan for a set of brand new appliances at mortgage interest rates!!! To make it even better, when all repairs are completed, the buyer has a great home more often than not well under market value. Click here to learn more about 203(k) Streamline loans.
Bidding Process
What exactly is the HUD bidding process? When a HUD foreclosure first "goes to market" it is only available for purchase by qualifying owner-occupants for the first 10 days. At the end of that period the best owner-occupant bid that meets HUD's minimum net requirement is awarded a 45 day opportunity to purchase the home. If the home does not sell within the 1st 10 days then the sale will open up to investors. One exception to this process are qualifying homes that reside in HUD designated revitalization areas. Prior to being available to owner-occupants these homes are first enrolled in the "Good Neighbor Next Door" (GNND) program where they are available for a 5 day period of time to teachers, policemen and firefighters. The primary benefit of the GNND program is to reward the buyer after 3 years of ownership with the "forgiving" of a "ghost" mortgage equal to 1/2 of the original purchase price. For example, if the home was purchased for $100,000, there would actually be 2 mortgages, a $50,000 "normal" note combined with a $50,000 ghost mortgage. After a certain number of years, currently 3, the ghost mortgage goes away and the homeowner only owes $50,000 less any other principle that was paid down. I know of nowhere else that a buyer can count on that type of equity gain after only 3 years of ownership.
click here ---> HUD PROPERTY SEARCH <--- click here
Courtesy of www.NOHassleBroker.com
Bill Ahls, Broker
