What are "HUD homes," and are they a good deal?

What are "HUD homes," and are they a good deal?
In Buying Property - Asked by Smith J. - Aug 18, 2011
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Answer(s)

Katea R.
Broker/Agent
Los Angeles, CA

HUD homes can be a very good deal. When someone with a HUD insured mortgage can't meet the payments, the lender forecloses on the home; HUD pays the lender what is owed; and HUD takes ownership of the home. Then we sell it at market value as quickly as possible. Read all about buying a HUD home. Check our listings of HUD homes and homes being sold by other federal agencies.

Aug 18, 2011
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Katea R.
Broker/Agent
Los Angeles, CA

HUD homes can be a very good deal. When someone with a HUD insured mortgage can't meet the payments, the lender forecloses on the home; HUD pays the lender what is owed; and HUD takes ownership of the home. Then we sell it at market value as quickly as possible. Read all about buying a HUD home. Check our listings of HUD homes and homes being sold by other federal agencies.

Aug 18, 2011
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Charles K.
Broker/Agent
Cornelius, NC

A HUD home is a 1-to-4 unit residential property acquired by HUD as a result of a foreclosure action on an FHA-insured mortgage. HUD becomes the property owner and offers it for sale to recover the loss on the foreclosure claim

Aug 19, 2011
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Leah H.
Hopkins, SC

Everything said by other agents is correct. I will add the following: only approved HUD registered agents can help purchase HUD homes for clients.
I currently am the buying agent on a HUD home for an investor.

Aug 19, 2011
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Nancy G.
Broker/Agent
Sandy Springs, GA

A good deal is in the eye of the beholder. Minimal money down and incentives for some public servants etc. There are also incentives if you buy a HUD when it just comes on the market. Can I help you...if so what zipcodes are you interested in?

Aug 22, 2011
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Rob M.
Broker/Agent
Seymour, IN

Like all REO properties, you need to really evaluate property carefully, my recommendation is to have your broker complete a market evaluation based upon the property being in excellent condition to determine the real value. Second step is to have a really good contractor or inspector evaluate the property with you before proceeding forward too far. Nowadays, issues like mold and other factors can really effect these properties dramatically especially if they have been closed up for a while. I would rather you proceed with caution as these deals although sometimes attractive have the potential to cost you alot of money if you are not careful. Good Luck!

Aug 22, 2011
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