When payments are not paid on a mortgage insured by the Federal Housing Administration (FHA), the lender (mortgagee) forecloses, or accepts a deed-in-lieu. HUD will generally accept the highest bid, or the bid that brings them the highest net. For Investor bidders, you can loose your earnest money if you decide to back out of a HUD purchase for ANY reason, including any problems that come up as a result of inspections. A word of caution, you need to make sure that the real estate agent that you use is experienced in buying HUD homes for sale. Not all Real Estate agents or Brokers can help you directly buy a HUD owned home. The sale is managed by HUD hired asset management companies throughout the country.
Extended (up to 180 days or open-ended): Homes worth more than $25,000 dollars remain in what becomes an open-ended Extended listing period. Keep in mind that HUD homes can be veritable gold mines for investors, who see the enormous profit potential in renovating and flipping a property, or even renting it out. When the property is foreclosed on, HUD eliminates the existing mortgage and any liens, then lists it for sale.
So it sells HUD home foreclosures through approved real estate brokers who advertise themselves as approved HUD brokers. Except for the first 30 days, that is: legally, HUD cannot accept bids on homes from real estate investors within the first 30 days that a home has hit the market. Since the new owner will be responsible for making any needed repairs, HUD strongly urges every potential homebuyer to get a professional inspection.
In addition, an authorized HUD broker will receive lists of HUD properties before the general public does. Nu Home Source Realty is here to help you avoid the countless hours of …