Foreclosures Help Information

Posts Tagged ‘hud homes’

Hud Foreclosed Homes For Sale

Although it is the dream of most citizens to one day own a home of their own, many have been deterred by the recent drop in the real estate market. Over the past three or four years, we've seen the market fall quite far. Home values have bottomed out and lost investors incredible sums of money, and no one is sure when the market will rebound and start providing good investment value again. But the one market sector that is flourishing is the market for foreclosed homes.

Foreclosed homes are untraditional real estate sales, and therefore aren't as popular or well advertised as open market homes. However, the values they provide are unparalleled, and homebuyers can often find deals ranging anywhere from 10 to 50% off the market value of a property simply because they are sold as repossessions by lenders. Buying for below market values is the essence of making a good investment, as the property has instant appreciation value; you've profited off your investment as soon as the sale closes!

And today's market for foreclosed homes is surging and offering incredible deals allover the country. The national foreclosure index has more than tripled in the past two years, and many cities are seeing rates as high as 5% of all their homes in some stage of foreclosure. This surplus market is driving down prices even lower than usual!

We advise getting involved in foreclosed homes now, as 2008 is primed to be one of the biggest years yet for these unique properties. Try searching for foreclosed homes listings with an online service like ForeclosureDeals.com to easily locate properties in your area. ForeclosaureDeals.com can also help by teaching you more about the buying process and providing advice.

About the Author:

Philip Smith has been educating buyers on the finer points of Foreclosed Homes purchase at ForeclosureDeals.com for over nine years. Click here to visit and read more advice on buying discount real estate.

Article Source: ArticlesBase.com - Foreclosed Homes: Winning Real Estate at Great Discounts

HUD Foreclosures Homes for Sale - StartHouseHunting.com!

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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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Hud Foreclosure Homes

Question: Questions about buying a hud home?

My husband and I want to purchase a home through FHA. We qualify and have money to put down. So far we haven't had much luck in finding what we want. I'm not being picky. I don't care about cosmetic flaws. Just want a certain number of bed, bath and garage, etc. There is a hud home that opened up in our area. It looks like it might be something we would to look at. My realtor keeps telling me that she doesn't advise showing us foreclosures or hud homes cause they are usually nothing but problems and most of the time FHA will not approve them. Yet I keep reading that they can be a great opportunity. If we were to look at this home, would we bid on it first and then if approved, get an inspection? How does the process work? I know the realtor has to be registered and I'm guessing mine isn't. Is it worth checking out?

Thanks!!

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Answer: We bought a Hud foreclosure 12 months ago. Check out www.hud.gov for listings in your area and answers to your questions that is where we found our home. Hud will show you the listing agent, who represents their foreclosures in your area and they can help you with the showing. HUD inspects the homes ahead of time and ours was so thorough that we waived inspection. They also pay someone to come in regularly to make sure the property is in order while listed. You do have to agree to live in it for a 12 month period, but other than that they make it a really easy process. During closing the HUD closing agent over and over again advised us on how to maintain our conventional mortgage,how have it reappraised for lower taxes, how to access equity, and was so careful to make sure we knew what we were doing and that we were ok with the process. Have owned several homes and this one was best process ever. Plus, it is a newer move in ready home in great shape and because HUDs are priced lower we moved in with 18% equity over our dp. It was a great choice. And although someone will make a disagreeing remark to this, I felt much safer going with the government on this.

Investing in Foreclosed Homes

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