What is a HUD Home?
When a buyer defaults (stops making payments) on a FHA insured loan, FHA conveys the title of the property to Housing and Urban Development, a federal agency. The home is then put up for sale by bid. These homes are usually sold in as-is condition which is usually reflected in the asking price.
Who Can Buy A HUD Home?
Anyone (within bid date guidelines) who has been financially pre-qualified with a lender and or/anyone who can pay cash. (The funds must be pre-verified.)
How To Make A Bid
You will want to prequalify with your lender before you submit any offer on the home. It is also a good idea to thoroughly inspect home and/or have a professional home inspector inspect the home before you submit your bid on a HUD Home. Although HUD Homes are usually sold As-is, you still want to know what to expect. All bids must be submitted through a HUD registered real estate brokerage.