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.
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.
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 firstname.lastname@example.org.
*Info provided by Southwest Alliance
Title insurance is not required if you are paying cash for a property; however, a few hundred dollars now might save you thousands of dollars, not to mention the headaches, later on. Title insurance protects you from any losses sustained from defects in the title. If you are getting a loan to purchase the home, the mortgage company will most likely require it. Title insurance protects the holder from any losses sustained from defects in the title. What else should you know about title insurance?
Title insurance protects your ownership rights, not only from fraudulent claims but also from mistakes whether during your purchase or previous transactions. It might be as something that seems simple such as a name being misspelled or an inaccurate description of the property.
There are two types of policies… one for the lender which protects the lender and one for the owner which protects you. I’ve been selling real estate since 1998 and I’ve never seen a lender NOT require the lender and the owner policy. Even if you are paying cash, you should get the owner coverage.
The cost, at least here in Texas, is a one-time cost based on the sales price of the property. It doesn’t matter which title company issues it as far as cost goes but you do want to insure that the work is done by a reputable company. If you don’t know of one, ask your real estate agent.
Typically a seller will pay for the title policy; however, it is a negotiable item on the Texas promulgated forms. The Texas offer to purchase document has a check-off box for buyer or seller to pay. The name of the company that will perform the title search and issue the policy is indicated as well. If you are purchasing a REO or bank-owned property, the REO company or bank will specify a particular company to complete the title work and provide the policy. HUD-owned properties are assigned to specific companies for closing who also handle the title work on it. In both cases, you do have an opportunity to request a different title company. For more information, you should speak with your real estate agent.