What is A HUD Home?

Really?  Home is Home....does it really matter who owns it?   When we hear Hud Home or Bank Owned or VA Home, what does it really mean?   90% of the foreclosure hype on the internet is garbage.   You know this, however, we want to pursue our burning desire to find the best house at the best price, no matter how confusing or frustrating it might be.   I hope my blog can help, Please bookmark, we are planning out some amazing tools that will cut through the crap and lead you to some fun and meaningful tips, so you can own your own home before the market heats up.   


Don't Worry About Being In a Hurry.


Prices are going to continue to drop, some say by 20%, As shadow inventory hits the market we will be having a lot of fun buying houses, I like Hud Houses.  And btw, it does matter who owns the house.


Not in a big way, but in small ways.  By learning the little known facts about HUD Homes you will be a successful home owner.  This is why I started this blog, to give you a competitive edge and to support you to being in the right place at the right time with a winning bid that makes $ense.  I believe anybody can own a home if you are committed to it.  It doesn't matter if you are 18 or 75, have a discharged bankruptcy or foreclosure.   With good information, a burning desire and happy thoughts, you will make it happen.




A HUD HOME is....


HUD = Housing and Urban Development;    HOME =  Single Family Residents and Muti-Family Units (under 4 units) that are sold to the owner occupants and investors  through a sealed bidding process. These properties were originally purchased using a FHA insured loan. The property was foreclosed by the lending bank and then purchased by the government and transferred to  Real Estate Asset Managers to represent the government in selling the property.  Check out the list and drive by today.

Rent a Foreclosed Home

No….I am not writing about renting your current house that is in foreclosure, I am happy to give you the run down on that, as I have heard owners staying in their home up to 3 years without rent.  But..that’s not what this post is about.  This is a blog about Buying HUD Homes, not living rent free or collecting rent from your foreclosed house.

Top 5 Benefits to Renting

1.   Free Repairs, the landlord foots the bill.

2.   Home prices keep falling Shillings (insert article) another 20% is anticipated.

3.   Stuck with loud smelly neighbors and a barking dog.

4.   Renting will always be cheaper than buying in higher end neighborhoods.

5.    The freedom to move whenever you want

I fundamentally agree with all of them.

However, if you don’t buy a house, and your going to rent, guess what?  The odds are the house you will be renting was a recent foreclosure.  

If your going to Rent a Foreclosure Why not buy one?

1.    You know you love home repair projects, even if you are all thumbs and it feels good to fix it yourself, watch your kids fix it and to be yelled at for not fixing it....well some people like it when their spouses yell at them.

2.    Once home values start going up so will your rent. Do I need to say more?

3.    If you own or rent, barking dogs and smelly neighbors suck.  Since we can’t shoot the dog or hose down the smelly kids next door, Check Out Your Neighbors, know who they, this is a must for renters or owners.

4.    If good schools or living in a high priced neighborhood is your primary goal and renting is the best option, there is no shame or loss in this decision. Do it, no guilt.

5.    This Is My Home! No permission needed to smoke, have a dog, put up a playground or design your own private dungeon for the loud neighbors…sorry I just couldn’t help myself.

Just Buy Smart

Watch the value trends in the neighborhood.  When you see a HUD home for sale.  Pay attention to the list date.  This gives you a good idea, how long the house has been on the market, this helps as you develop your bidding strategy, which I will write about in upcoming posts.

Try to get an idea of buying interest. High buying interest is good and bad.  It’s good to know you are looking at a property others are interested in.  It’s bad, because you have to pay more, because of the competition.  However when you buy a hud home with an FHA  loan, you will never have to pay more than the current appraised value.  

As a general rule, you can bid lower than asking price.  If the bid was not accepted, keep edging upward. The Asset Manager, will not counter back with a price, you just have to bid again the next day by 11:59pm  that same day.  If you are committed a buyer your HUD approved broker and are qualified for an FHA loan and have the $500-$1,000 deposit, your broker should be ok with submitting offers each day till the bid is awarded.