Who Can Buy a HUD Home?

Information presented here is subject to change by HUD *

Any qualified purchaser can offer to buy a HUD home, regardless of race, color, religion, sex, national origin, handicap, or familial status. 

Before making an offer, prospective buyers must have a letter, written on the stationery of a mortgage lender, stating that they have been approved for the loan amount needed.  This means that the Credit Report has been performed, reviewed, and approved by the lender.  The letter must state that on the basis of this review, the mortgage financing for a specified dollar amount sufficient to purchase the property should be available to the buyer.  Buyers paying cash must provide proof of available funds. 

All HUD Owned properties are sold “as is.”  HUD does not make any repairs.  There are no representations or warranties, express or implied, on the houses.  HUD does not guarantee the condition of any house, listed FHA-insurable or not, or whether it meets local codes or zoning requirements.

HUD Owned homes are sold by electronic bid.  Bids are submitted on the behalf of buyers by real estate agents who have a valid NAID number.  Bidding preference is given to Owner-Occupants.

Earnest money required is either $500 or $1000 depending on the price of the home.  For a vacant lot, the deposit is equal to 1/2 the price of the lot. 

Property descriptions may carry a disclaimer similar to this:

HUD PROPERTIES ARE SOLD AS IS WITH ALL FAULTS. BUYER TO VERIFY ALL LISTING INFO INCLUDING SIZES,SCHOOLS,HOA,ETC. CONTACT VELDA FOR BIDDING PROCEDURES,AVAILABILITY,CONTRACTS, & ADDENDA.

TO BID ON A HUD PROPERTY YOU MUST HAVE A LETTER FROM YOUR LENDER SHOWING THAT YOU ARE PRE-QUALIFIED OR PRE-APPROVED FOR A HOME LOAN.

OR

PROVIDE A LETTER FROM YOUR BANK SHOWING THAT YOU HAVE THE AVAILABLE FUNDS IN YOUR ACCOUNT.

YOU WILL ALSO NEED A CASHIER’S CHECK FOR THE EARNEST MONEY.

Southwest Alliance posts HUD properties on their website www.BidSelect.com or www.SouthwestAlliance.com.  You can search by state, county, city, or other information. 

New listings are posted on Tuesdays and Fridays.  Price reductions are posted on Sundays and Wednesdays. You can also set up an automatic search to be emailed to you when there is a change.  If you have questions, please don’t hesitate to contact us:   325-725-9854 OR EMAIL talk2velda@yahoo.com.

 

*Info provided by Southwest Alliance
Advertisements