One of the most intriguing types of properties that I get questions on from clients, friends and family are HUD homes. “What exactly is a HUD home?” And “is it true that I can buy one of these for a huge savings?”
First, a HUD home is any property from 1 to 4 units, residential, that was insured by FHA (Federal Housing Administration) and has now been foreclosed and acquired by HUD. (The U.S. Department of Housing and Urban Development), not a lender but a governmental Administrative agency which oversees the FHA, which insures home loans in specific areas of the country from default.
Yes that is a mouthful but in a nutshell, these are FHA insured homes that have been foreclosed upon and are now available for sale.
The answer to the second part of that question, “Can I buy one of these for a huge savings” is yes! I have personally helped clients take advantage of these types of homes and they have been able to purchase these homes at tremendously reduced prices.
How can I be sure I am getting a bargain? Is another question I get, and with the help of an experienced real estate agent who knows the process, and can offer you current market comparisons and/or broker price opinions, one can quickly determine how the value compares to the market value of the property (what it should sale for based on attributes, condition, size, age, location and current marketing times.)
When compared carefully you can then be much more confident if savings are to be had.
For more information I regularly include information on this subject in my monthly eNewsletter, you can subscribe here.
You can also subscribe to my regular tweets regarding HUDs and Bank owned properties.
In addition, you can find more links and information directly at my website GETUTAH.