Government Foreclosures – A Small Guide
When a house is foreclosed upon by a government agency, the title of the home is passed to the Department of Housing and Urban Development. These government foreclosures are then put up for sale.
If a buyer has cash to buy the home or is eligible to receive a home loan, a home involved in government foreclosures can be bought.
HUD homes for sale can only be bought through government approved real estate agents. Listing for the same can be found on the Department of Housing and Urban Development’s web site.
HUD homes sell on a non-warranty, as-is policy. HUD sets up an offer-period where bids on the house are received. When the offer period is over, the bids that have been received are opened, and the highest bidder can lay claim on the house. After the offer period, bids can be submitted on any business day, and if the bid is accepted, the estate agent representing the buyer is generally notified within forty eight hours.
If the winning bid is yours, your real estate agent guides you through all relevant paperwork that needs to be done. A settlement date, which could be in between 30 and 60 days, is given to you. The agent is usually paid by the Department of Housing and Urban Development, a commission of up to 6%.
When choosing to buy a HUD home, inspecting the property is a must. The real estate agent that you are dealing with can arrange for the property to be inspected. Having the home inspected by a professional inspector is a very good idea. They know where to look and what to look for.
Buying a house that seems like and very good deal, not carrying out a thorough inspection, and then having to spend a very large sum of money on repairs, is not what any buyer would like.
Close to 30,000 single family homes are part of the inventory of HUD homes and can be found all across the country.
