Buying HUD Home - 4 Important Points You Need To Know!
You have read in the newspapers and have seen on TV news about the problems in the housing market and all of the home foreclosures. You may have gone by a home and saw the orange stickers on the door and a sign in the window telling you this is a HUD Home and to contact a Realtor. But you don’t know anything about buying HUD Home.
First, HUD foreclosed homes are homes that had been financed with a FHA Mortgage Loan and has been foreclosed. HUD has taken possession and title to the property and put it on the market.
Another thing you should know about buying HUD Home it is not anything like buying a home from a homeowner. I am going to discuss four points you should know if you are considering buying HUD Home.
1. You make a bid, not an offer.
When purchasing a home from a homeowner you make the seller an offer through a Purchase Agreement. When you buy a HUD Home you make a bid. It is like an auction. You make the bid on the Internet and you have to use a real estate agent. The process of buying HUD Home explained in detail on my website The HUD Home Expert.
2. You need an experienced real estate agent.
One of the biggest mistakes most buyers of HUD Homes make is using an inexperienced real estate agent. Most real estate agents are not experienced in buying HUD Homes. If your real estate agent doesn’t have the necessary experience then find a new one or make sure someone in their office can advise them and check everything they do. The wrong real estate agent can cost you thousands of dollars. Ask your agent questions on how to buy HUD home and if they say they don’t know and they will get back to you with the answer, you need to look for a new agent.
3. You are buying the property in “As-Is” condition.
HUD makes it clear that the property is being sold in “As-IS” condition. Most HUD foreclosed properties will have what HUD calls a “Property Condition Report” which is similar to an inspection. In the Property Condition Report HUD will list what they found wrong with the property at the time the report was done. BUT, and this is a big BUT, you need to have your own home inspection done.
4. HUD will pay up to 3% of Buyer’s closing costs.
You can ask HUD to pay up to 3% of your closing costs. The 3% of closing costs has to be in the initial bid you placed on the Internet. HUD will only pay certain Buyer’s closing costs and this is another reason you need an experienced real estate agent. For example, you get an accepted bid of $100,000 on a HUD Home and you ask for 3% ($3,000) of purchase price for closing costs. If HUD will only pay on allowed closing costs of $2,000, then you will lose the other $1,000. HUD will not refund you the $1,000 they disallowed.
There are a lot of bargains in the market on foreclosed homes, and you can take advantage by doing some research, and getting the right real estate agent. Although the process of buying HUD Home is different it is certainly worth the effort!
Click Here Now To Find Out More About Buying HUD Home! Al Hardymon is an experienced real estate broker in buying and selling HUD homes for both his clients and himself. You can do a Free Search for HUD Homes Listings in your state at his website The HUD Home Expert which is an informational center for buying and selling HUD homes for sale.
Article Source:http://www.articlesbase.com/real-estate-articles/buying-hud-home-4-important-points-you-need-to-know-925940.html
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