HUD Homes Info
CHECK OUT HUD FORECLOSURES FOR A GREAT HOME BUY
Whether you are a First Time Home Buyer; a Retiree who wants to downsize; or a Real Estate Investor --- or a Realtor looking for your clients - There are great buys for you available through HUD – The United States Department of Housing and Urban Development.
Don Kenney is an authorized listing agent for HUD Foreclosed Properties in San Diego County. Give him a call for a free no obligation evaluation as to whether you might qualify to buy a HUD home as your primary residence or as an investor. 760-931-5345 or, send Don an E-mail with your specific question about buying a home from HUD: djkenney@sbcglobal.net.
To find a HUD home in your area of interest and to find the steps to submit a bid to HUD go to: www.HudHomestore.com.
a. Check out the Frequently Asked Questions Tab on the HUD home page for more information on buying a HUD Home.
b. The Home Page Resources tab – will give you information such as: Should you Rent or Buy; FHA Loan Limits; HUD Handbooks, Forms and Publications; How to Avoid Foreclosure; Counseling for Home Owners and Buyers and much more.
Enter Your Search Criteria: Once you get to www.HudHomestore.com, on the Homepage you can plug in your search criteria and be taken to those HUD homes that meet your criteria. Examples of search criteria you can enter include: City; Zip Codes; Price Range; Number of bedrooms and baths. Etc. Once your criteria is entered, click on the “Search” button. This will bring up a current HUD Home List that meets your criteria. The Property Search Results page lists the properties. From left to right on this list you will see:
a. A picture of the home.
b. The HUD case number for this home. You must use this number in making your bid and any correspondence or communication with HUD.
c. The Price of the home: Based on a current FHA independent appraisal. In making a bid I strongly recommend that your minimum bid should be this price if not higher.
d. Status of the Home: This column tells you if this is a new listing or a price reduction. If nothing is in this column it is neither a new or price reduced home.
e. Number of Bedrooms: In the home.
f. Number of Bathrooms: In this home.
g. Listing Period: This is a very important area as it tells you that by midnight of the last date given you must submit your HUD bid. Note the time frame depends on whether the homes bidding status is:
1. Exclusive: Bidding is limited to owner occupants; non-profits and government agencies. No Investors non-owner occupants are allowed to bid. Bids must be into HUD by midnight of the last date given.
2. Extended: This status means that HUD did not receive an acceptable bid during the Exclusive period and HUD is opening up the bid process to all bidders including Investors; Owner-Occupants; Non-Profits; and governmental agencies. Note: During extended bidding HUD will open bids after mid-night each day until they find an acceptable bid.
3. Lottery: Bidding is limited to those “Good Neighbor Next Door”, including Policemen; Firemen; Teachers etc. See FAQ’s to see if you qualify. Bids must be in by midnight of the last date given.
h. Details:
1. View Street: Here you can see a picture of the neighbor and street in front of the home.
2. Map It: Also you can get an exact location map for the home.
3. E-Mail: Finally you can e-mail a picture and the basic information about the property to a third party.
i. Save: You can save one or more properties in which you have an interest with the save button. You will create a User Name and Password for later review of the property information, price, pictures, and other details.
For more Property Details on this Home: From the list of HUD homes (see above) that meet your criteria you can get more information on the home by placing your computer cursor on the picture of the home (far left column) and right clicking. This will bring up the “Property Details page”.
a. Important Points: About this home are found on the top left corner of the Property Details Page, including:
1. The HUD case number.
2. Eligible Bidders: “All Bidders” means investors can bid as well as owner occupants, non-profits and Government agencies. “Exclusive” means bidding is limited to owner occupants, non-profits and Government agencies, no investors.
3. Bid Submission Deadline: You must submit your bid by midnight of this date.
4. Bid Submission Time Remaining: This gives you the number of hours and minutes to submit your bid. Usually applies to “All Bidders” status. Note again that in these cases HUD will open the bids every day after midnight until an acceptable bid is found.
b. Property Details Page Tabs: There are four tabs which contain a lot of good information which includes:
1. Property Details Tab: Gives you pictures and all the information about the property (see details below).
2. Addendum Tab: Has links to a lot of good information about buying a HUD home including:
a. Diclosures: HUD does not use the Calif .Assn. of Realtors forms, so buyers need to review these disclosures carefully.
b. Selling Broker Quick Reference Guide: Gives realtors specific instructions on how to submit a bid for their real estate clients – a great tool.
c. Portfolio of Sample Completed Contracts: This shows how a bid and contract submission should look like in a “Perfectly Completed” HUD sales contract.
d. PCR: This is the Property Condition Report which shows in detail all of the Home Systems that have been checked by the HUD inspectors from the Air Conditioning to the Toilets and Roof.
e. The Owner/Occupant Sales Package: For Owner/occupied home buyers.
f. The Investor Sales Package: For the Investor home buyer.
g. Instructions on How to Complete a HUD Sales Package.
3. The Maps Tab: Gives you another detailed map to locate this home.
c. Other Information on the Property Details Page: There is a lot of other needed information on this page including: A full set of pictures of the property; Square Footage; HOA fees; the Listing Period for this home; “IN” indicates FHA insurance is available; 203k eligible, means you may qualify for a remodeling loan; Whether HUD will provide a “Repair Escrow” an amount to repair and/or fix up the property or sell at less “As Is”.
Another great website you might check out for more Frequently Asked Questions as well as specifics on the HUD bidding process is: www.BLBResources.com.
If you have more questions on the HUD process – give Don Kenney a call: 760-931-5345 or shoot him an e-mail with your questions: djkenney@sbcglobal.net. As a HUD listing agent he has a lot of experience in finding great HUD homes for Owner/Occupants; Investors; Retirees and others who want a “Great Buy on a Great Home at a Great Price” – Call Don Kenney.