The Benefits of Buying
a HUD Foreclosure or Repo
December 15th 2005
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Due your own
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For as long as I can remember I have heard of people buying HUD homes
and fixing them up and selling them for a profit. We did just that a
few years ago and doubled our money in two years. There are risks
though.
A division of HUD (Housing and Urban Development) oversees the Federal
Housing Administration (FHA) that insures loans for banks. Sure you
have heard about FHA loans before, but FHA does not actually loan the
money they only guarantee the loan. This makes it easier for banks to
loan to people that would normally not qualify for a loan.
HUD is great because the loans are given to risky people. This means
they are more likely to default on the loans. This is good for
investors because the government is not so hot at getting top dollar for
their foreclosures. They hardly ever do anything to the property to
make it more appealing. This is a great opportunity if you are looking
for a fixer-upper.
Find yourself a good Real Estate Agent that understands you are looking
for distressed property. The agent will need to be HUD approved and
have the various keys to get you in the properties. They should also be
knowledgeable about the HUD contracts. These contracts are different
than regular real estate contracts. Make sure the agent is familiar
with the online bidding procedure for HUD homes.
Investigate HUD properties via the Internet. Don’t expect the real
estate agent to read your mind. You know your capabilities and what you
are looking for. Create a list of properties you would like to see and
begin by just driving by a few. When you see one you like, contact the
agent.
HUD property listings are usually posted on Fridays in most states. You
can place a bid on the weekend but it will not be counted until Monday.
Usually the bids are due by Tuesday for “Full price owner-occupants”
only. If the home does not sell here the properties become available
for less than full price owner occupants only.
After a week the property becomes available to everyone. Investors who
do not plan on living in on the property can invest at this time. These
time periods may vary from state to state, so check with a qualified
real estate agent for the details.
HUD properties are sold as is. If you need help financing, look into the
FHA 203k HUD Loan Program. These HUD loans will help you get the money
to make the purchase, plus help pay to fix it up. It will also give you
maximum equity, thus minimizing your risk. Again, always check with
real estate loan professionals concerning the details.
By
Dan Wilson
Best Syndication Staff Writer
Real Estate
Keywords and misspellings: reel estate estat
owned proparty properdy
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