Department of Housing and Urban Development (HUD) residential foreclosures are available throughout the United States. If you still want the property, you must submit a bid package containing a complete set of contracts to a HUD field office with your deposit of 5 percent. HUD lists their homes on the Internet as well at , and HUD home foreclosures can also be found at RealtyTrac.
However, like with the broker’s commissions, closing costs must be made part of the offer when the bid is submitted to HUD. Just like anything else, there are a quantity of Housing and Urban Development homes that are in respectable condition, and a few that will require some repairs.
HUD incorporated numerous housing agencies and assumed administrative responsibility for them. The buyer may offer any price, but HUD will only agree to offers that provide an acceptable return. Good thing about HUD homes is that HUD gives you a free property condition report that you can read prior to making an offer.
A HUD property is a residential property acquired by HUD as a result of a foreclosure action on an FHA-insured mortgage. As these properties are owned by the government they are available at reasonable prices as the HUD Department is mainly keen on reselling the homes in order to recover the loans and therefore do not have any profit motives.
Fortunately, HUD and its property management contractors offer a convenient way to search for homes online. They want and need to be rid of these homes and offer some pretty sizable discounts for investors buying them. The government even has a revitalization program that gives big discounts to buyers who will buy these homes in specific areas targeted for revival program.