Tips for Buying a HUD Home

Buying a HUD (U.S. Department of Housing and Urban Development) home is a great way to purchase a home and may save you some money. However, if you don’t know what you are doing buying HUD homes can also lead to financial difficulties. Before making any HUD home purchase do your homework and make sure that you know and understand the HUD home buying process. To help clarify the HUD Home buying process ForeclosedHomes.com has compiled these HUD home buying tips:

1. When can I bid on a HUD home?

   Interested buyers can place bids on HUD homes during a 10-day period that starts on a Friday and closes on the Sunday of the following week.



2. Making an offer

   Buyers will want to make offers based on ‘as-is’ appraisals determined by HUD. HUD will accept no offers that are lower than 50 percent of their appraisal. If you offer more than the appraisal price, you will be required to bring the difference to the closing, as that amount cannot be financed.



3. Will I need to get the home appraised?

   It is not necessary to have a HUD home independently appraised.



4. Whose offer comes first?

   Owner occupants always have first priority; however, if their offer is not accepted or received by the end of the offer period, the HUD home is then open to all bidders.

continued...› | 10/30/2009