Important Factors Regarding How to Buy HUD-FHA Properties
There are many different types of homes which can be purchased on the general market today. The United States Department of Housing and Urban Development is a federal agency developed for the purpose of managing federal housing and related issues. Within this encompassing federal department is the Federal Housing Authority which further carries out the goals of HUD. There are certain properties known as HUD-FHA properties and these will be discussed in detail as well as the process for buying these homes.
What HUD-FHA Does With Regard to Property Purchases
In order for a home to be a HUD-FHA home, it has to be owned by the federal agencies. They obtain the initial property in the following manner. Individuals can apply for a HUD-backed loan through their individual lender. From that point onward, HUD vouches for the repayment of the loan and will repay the lender should the borrower fail to do so. In the event that the homeowner fails to pay their mortgage and a foreclosure is instituted, HUD will repossess the property, pay off the lender any amount currently due and then take full ownership of the property. From this point onward, the property belongs to HUD and the agency can dispose of the property as it sees fit.
After the property has been taken and is in the rightful ownership of HUD, the next step is to sell the property to another homeowner. If HUD uses a real estate broker to initiate the sale of the home, the broker will take over certain pertinent duties related to the sale of the home and receive a commission, usually 6%, for doing so. It is important to note that real estate agents are allowed to bid on HUD homes and purchase them on their own but need to go through a HUD broker.
As for the condition of a HUD property, all HUD properties are sold as is on a cash basis. This does not mean that an individual has to have cash in hand to buy it but they will need to obtain a loan from an outside lender. HUD homes are usually of a lower to intermediate price range of home and some homes will be in better conditions than others will.
How to Find a HUD-FHA Home
There are a few different ways to locate HUD homes. One who is interested in buying a HUD home can search the newspaper real estate advertisements, contact a HUD broker or contact HUD directly for a listing of HUD brokers in the area. Once a potential HUD home is found, it is time to proceed with the purchasing process.
Buying the HUD Home
When a potential HUD home has been located and the individual is expressing an interest in purchasing it, it is important to adequately inspect the property and make sure it is what you are looking for, both inside and out. If the house is what you desire, you will need to submit a HUD bid package to the area HUD office with a 5% deposit. This deposit is non-refundable should the prospective buyer fail to follow through with the purchase. The individual will wait for the bid to be accepted and if so, will have 30 days to close escrow.
Reasons to Buy a HUD-FHA Home
Perhaps the number one reason to purchase a HUD home is for the reasonable price that is being offered on the home. HUD homes tend to be more reasonable in price than non-HUD homes so it entices individuals to show an interest and ultimately purchase homes of this type.
Some individuals buy HUD homes not only for the price but also for the overall quality of the home itself. Although most HUD homes are of a modest level, there are some which individuals find to be perfect for their needs. Whether they have the right amount of bedrooms and bathrooms or are in a desired location, some people buy HUD homes without ever really looking for a HUD home in particular.
Taking advantage of the homes which are offered by HUD is extremely attractive for many individuals. Not only are these homes reasonably priced but they are also on the market and off of the market as quickly as possible since HUD is anxious to sell the home and have one less home to look after. If an individual is looking to buy a home that is reasonably priced, usually a quick sale and at times in the perfect location for the homeowner, then considering the purchase of a HUD home might be the perfect thing for a prospective homebuyer to do.
'The attention to detail and professionalism that Troy and his staff brings to our contract drafting process is unmatched. It’s a rare occurrence to find a law firm that cares as much about your legal protection as you do. But, Doucet Gerling is that law firm."
Mr. Doucet and his staff handled two foreclosures and a related matter for me. I found everyone in his office to be professional, effective and responsive. Everything he handled for me got me the results I expected. I highly recommend Doucet Gerling.
As an attorney and former client of Doucet Gerling, I was very impressed with the representation of Troy Doucet and his firm. I would recommend him to all who face difficulty in saving their home or getting cooperation with their mortgage companies.
If you need legal assistance regarding foreclosure, I urge you to consider putting your complete trust in Doucet Gerling. They will employ their vast knowledge and expertise on your behalf and work to attain a great outcome for your individual needs and situation.
"Troy Doucet is one of the most gifted attorneys that we have ever had the pleasure of dealing with. He treated us with kindness and generosity. We were most impressed with his integrity and high sense of duty to us. If you are looking for an attorney to get the job done we highly recommend Troy Doucet. Our family can never thank him enough for getting our foreclosure problem solved."
My company has worked with multiple law firms in the past, but none have come close to matching the quality we are seeing from Doucet & Associates. If you want an attorney who has a deep understanding of both the legal system AND business, hire them – you won’t be disappointed.
"Mr. Doucet worked wonders in my case. He stood up for me when I felt overwhelmed and helpless and kept my credit rating and future intact. Thanks you so much for helping me and my family."
"My family and I would like to send a thank you with sincere gratitude for all the time, hard work, and long hours set a side daily to represent and speak on our behalf during a very challenging time in our life. Our success is a reflect of your commitment. Thank you Troy Doucet & law firm."