Purchasing Foreclosed Homes
HUD homes are often dismissed, even by veteran real estate investors because they are misunderstood or investors have been so spoilt or used to acquiring other properties they haven’t needed to pursue them. As far as valuing the property, a hud home will be for sale in the investor period for either 5 or 15 days and that gives you plenty of time to value it. You can get huge bargains, it all depends on what state you’re in. With the other government homes you can get a great buy but not as good as with a HUD home.
The bidding is fair and with good strategy and an experienced HUD Approved Broker will help you win the bid without over bidding. Track the Bid Results to give you an idea if bids are going over price or below price, just remember that the price posted is net to HUD not offer price.
HUD pays real estate brokers an industry-standard commission for facilitating the sale of its homes. Good Neighbor Next Door (GNND) – Eligible GNND buyers can bid in lottery, exclusive, and extended phases, but can bid exclusively on insured single unit homes in revitalization areas in the lottery phase.
HUD designates certain areas as revitalization areas” based on the income of the people living in the area, the number of foreclosures and the portion of the population that actually own their homes. In the case of HUD homes there are no negotiations, no haggling, or offer and counter-offers.
HUD does not warrant the condition of its properties and will not pay for the correction of defects or repairs. If sold directly, HUD will generally place ads in newspapers, rather than place individuals on mailing lists for their single-family homes. While you may think that a HUD home warrants an automatic lowball offer, this isn’t necessarily the case, especially if you live in a competitive real estate market.