HUD Homes Listing | Get Smart Quick and Dirty Tutorial
What is a HUD Homes Listing?
Hi Everyone! A HUD Homes Listing is a residential foreclosure listing by the Department of Housing and Urban Development (HUD).
HUD homes can be one of the most astute investments that you can make as a property owner or investor. But like most other investments an HUD Home needs a lot of planning before it can pay you dividends.
Before undertaking any large investments such as property, it is very important to fully understand where these decisions may take you. If you have not invested before, property and real estate can be one of the safest and most profitable investments that you can make especially in the current economic climate.
HUD Homes can easily be a part of your portfolio. This article will show you how and where to find these HUD Homes Listing Resources on the internet and will also try to explain the nature of HUD Home investment. There are certain interesting rules and regulations that you also might want to keep in mind before browsing an HUD Homes Listing (or five). So here we go –
HUD Homes Listing - Where Do These Homes Come From?
The FHA or Federal Housing Administration insures the loans that a person may use to buy a home. If this home is foreclosed upon then the lender can claim the balance of the mortgage from the FHA. Once the lender is paid, the home is turned over to the HUD to sell.
An HUD home can be a great fixer-upper home if you have an eye for these things. Take a look at specific HUD Homes Listing to find out the current state of the home. A lot of HUD homes need repairs and are therefore appraised lower than their current fair market value. If you are good with restoring homes or feel like taking on a project then by all means take a look at that HUD Homes Listing.
Rules Regarding HUD Homes
Remember, HUD homes are not wicked cheap. The price of an HUD home is a function of a fair market value appraisal adjusted for the state of disrepair of the house. But generally, you will find some wonderful deals.
You can find HUD Homes Listings at various state websites or you can go to the HUD Home Store. These homes are sold in a bidding process. Your agent bids on a home and after a stipulated date, the bids are closed and the highest bidder wins. The agent gets a commission from the HUD.
The initial offering of the home goes to people who will actually be living in the home. If the home remains unsold, then it will be offered to investors.
So these are some of the basic rules that you need to know before you check out an HUD home listing.
I highly recommend checking out the following FAQ.
That’s pretty much it at this end. I hope you enjoyed my quick and dirty overview.