| A HUD foreclosure is a different kind of government | | | | While you can get listings of home auctions at the |
| owned property. Even though lower and mid-level | | | | HUD website, it is usually better to get your listings |
| income people are most often targeted by the HUD | | | | through your real estate agent who will do the bidding |
| foreclosure procedure, you must still qualify to receive | | | | for you. They usually also have additional helpful HUD |
| the properties. | | | | foreclosure information that they can offer you as well. |
| The US Department of Housing and Urban | | | | You can usually get a good idea of the condition and |
| Development (HUD) gives priority to prospective home | | | | type of property offered in the area that you are |
| owners who intend to live in the homes they are | | | | interested in, and the usual bidding prices, by looking into |
| purchasing. In addition, they must already have been | | | | previous HUD property sales. |
| accepted for a loan to be able to bid on the property. | | | | In the current state of the economy, getting |
| However, anyone who can meet the requirements of | | | | government backed bank loans is becoming more |
| the loan can also bid on the property. | | | | important than ever. While HUD does not issue loans |
| In neighborhoods that are being upgraded by HUD, | | | | itself, it will insure any lender against default of payment |
| priority may also be given to teachers, emergency | | | | on your part. This way you can usually get a prime |
| responders, police officers, and fire fighters so that | | | | loan with a low down payment, even if you do not |
| they will be willing to relocate to those neighborhoods. | | | | have a stellar credit rating. |
| A HUD property that has been foreclosed upon is | | | | It is a really good idea for prospective home buyers to |
| always sold "AS-IS", or in whatever shape it comes in. | | | | have the property inspected to know how much their |
| That is offset by the lower prices of the properties | | | | HUD foreclosure is worth when factoring in the costs |
| offered for sale by HUD, financial aid for the | | | | of fix-up and refurbishment as well as any repairs, |
| prospective home owner, payment of closing costs, | | | | maintenance or addons. |
| and helping with repair costs. Note that any financial aid | | | | Your loan issuing bank will issue an appraisal for the |
| received for the purchase and upkeep of the property | | | | home you are interested in buying. This is done to |
| will be added to the bidding price when the property is | | | | make sure the property meets minimum housing |
| sold at auction. | | | | standards for both housing and HUD purposes, and |
| To purchase a HUD property, you will have to work | | | | that it is marketable. Not all homes can be sold, such |
| with a HUD approved real estate agent. You will also | | | | as condemned properties. The benefit to you is that |
| need a letter of preapproval from your issuing bank, | | | | the bank appraisal will give you an estimation of the |
| which should be good for sixty days. Simply give your | | | | value of the home, which you can use for bidding |
| preapproval letter to your real estate agent as soon | | | | purposes. |
| as you start to work with them. | | | | |