Hud Foreclosure Homes For Sale
December 6th, 2009
Hud Foreclosure Homes For Sale
Question: Has anyone bought a HUD house, need advice?
I would like to know if anyone has bought a HUD foreclosure home? What is involved in the process and is it hard getting banks to finance the purchase? Also, has anyone ever bought a foreclosure from the court house(sheriffs sale)? How would I get financing for that when you have to bid on the property? Im new at all this and my first purchase will be for myself to live in. Any info is greatly appreciated.
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Answer: I bought a HUD home a number of years ago. The experience was indistinguishable from a normal purchase, aside from the offering process. We placed a bid on the property which HUD rejected. We re-bid a bit more then next go-around and it was accepted. From that point onwards, it was a normal purchase. We did get an FHA mortgage with slightly lower than normal fees and no points that did sweeten the deal a bit.
If you're buying at a sheriff's sale or foreclosure sale, you have to have your financing arranged in advance. A few banks specialize in this; you'll have to ask around. All of the normal qualifications and inspections have to be complete on the auction date so you often have to work VERY quickly and that's where it gets tricky. This is because you typically have to put down 10% with your bid and close within a very short time, often as little as 5 - 10 days. It helps a LOT if you have top-notch credit and can go with a stated income or no-doc mortgage. It's even better if you can pay all cash.
My ex and I tried that a couple of times and discovered a dirty little secret. The lender was usually the only bidder on a foreclosure and unless you were willing to bid near market, they'd just out-bid you and get the deed for themselves. The few tax sales that we investigated were in such poor shape that they weren't worth bidding on unless we were planning on tearing down the house and building new.
Foreclosure Homes In Metro Chicago Area
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Posted in HUD foreclosures | 
Tags: foreclosed, Foreclosure, Foreclosure Homes For Sale, homes, Homes For Sale, hud, Hud Foreclosure, hud homes, realestate
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