What is a HUD Foreclosure?
When those who financed their one to four unit residential properties with FHA-insured mortgages default on their mortgage loans, the U.S. Department of Housing and Urban Development takes ownership of the properties and the properties become HUD homes.
HUD will then typically sell the properties as quickly as possible to mitigate any additional losses.
How do you find HUD Foreclosure Listings?
Those who have a large amount of expendable cash or who qualify for a home loan qualify to purchase a HUD home for sale.
Owner-occupant purchasers, those who will use the property as primary residence, have precedence above investors and can purchase the HUD foreclosures in the initial priority period.
The homes that are not sold during that period become available to investors and other types of buyers.
Finding HUD foreclosure listings is easy for those who have access to the Internet. Foreclosure listings are open to the public on Internet listing sites maintained by companies contracted by HUD. Click here to find HUD homes listings by state: http://www.hud.gov/homes/index.cfm.
How do you purchase HUD foreclosure listings?
You must purchase HUD foreclosures via a HUD registered real estate broker. HUD will pay the real estate broker's commission if commission is included in the contract.
You can contact a housing counselor sponsored by HUD online to get additional help from those who specialize in this type of real estate buying.
In addition to the already major reductions, HUD has incited Good Neighbor Next Door initiatives that offer major purchase incentive to law enforcement officers, firefighters, emergency medical technicians and pre-kindergarten through 12th grade teachers to help reinvigorate selected areas.
These groups can purchase eligible properties at fifty percent of the list price. Those who buy properties as part of the Good Neighbor Next Door initiative must commit to remaining as the owner-occupant for 36 months during which time the property must also be the sole residence.
The list of available foreclosures changes on a weekly basis.