How to Buy a Home Real Estate or Property from HUD

Like anyone stuck with foreclosed property the Department of Housing and Urban Development (HUD) is looking to sell their assets.  HUD takes properties back when homebuyers fail to make payments on FHA loans.  It is in HUD’s best interest to not lose money on these deals.

In an effort to curb losses HUD has assigned various professional brokerage firms around the country to handle their asset sales.  For instance in Southern California HUD has assigned Pemco to handle all HUD foreclosure sales.  In New York HUD assigned National Home Management Solutions to provide the brokerage services.  HUD has a link to the various assigned brokerage firms throughout the country.

These HUD brokers will usually have a search box on their website so you can locate the available properties.  You will want to find a HUD registered broker to assist you in viewing the properties.  These agents / brokers will have keys or codes to allow access into the properties.  There is a list of brokers available on the various HUD listing broker sites. 

There are bargains out there.  HUD does not usually like to spend a lot of money revamping properties to increase their value.  Previous tenants may damage the property before they leave. 

There are some real fixer uppers out there.  After viewing some properties you may wish to place a bid on one.  This can be done through one of the approved brokers.  There are forms to fill out and your agent will walk you through the steps.

You may be outbid. This usually happens when a property first comes on the market.  Sometimes HUD does not accept the first bids or in rare cases no one bids on the property.  Some properties may sit on the market for years before someone’s bid is accepted.  This may happen rarely in this hot real estate market. 

By Dan Wilson
Best Syndication Staff Writer

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