Your HUD Foreclosure Questions Answered
February 10, 2008
Do you have questions about bidding on HUD foreclosures? If you can’t find the answers in the HUD Foreclosure Guide, send your questions to us at: HudAuctionWatch@gmail.com. We’ll answer the most popular HUD questions on our blog.
$5000 HUD Homes in Detroit
February 8, 2008
Want to own a million dollar home for $100,000? How about a $300,000 property for five bucks? Check out Detroit. After the auto manufacturing industry took its business overseas, home prices have taken a nose dive.
While thousands of laid-off workers are fleeing the city, a few brave investors have decided to start buying up property. Much of the city is in shambles: streets are neglected, crime is rampant, and homes are vacant and deteriorating. However, some risk-takers speculate that the city will see a rebirth in coming years.
Learn more about extremely low-priced Detroit foreclosures in the new article - Detroit’s $5,000 HUD Homes: Killer Investment or Money Pit?
HUD Homes in Utah
February 7, 2008
If you’re looking for a HUD home in Utah, you’re in luck. Utah is one of the most popular places to find these value-priced properties. Take a look at our Guide to Buying HUD Homes in Utah. You’ll find information on everything from how to search the state’s HUD property database to how to select a local agent.
Qualifying to Bid on HUD Repos
February 7, 2008
Before you bid on a HUD property, you need to meet certain qualifications. Most importantly, you’ll need a pre-qualification or pre-approval letter from your lender and an earnest money deposit (usually between $500 and $1000). Yes, you read that right: you’ll need to get a certified check for the earnest money before bidding.
To learn more about preparing to buy, check out this article: How to Qualify for Purchasing HUD Repos.
HUD Approved Realtors
February 7, 2008
Not all agents can help you bid on a HUD home. You need to find a HUD approved realtor. These agents have been trained on HUD’s unique auction system and are the only people allowed to place bits.
If you’ve already found the perfect non-certified agent, don’t worry. It doesn’t take much to get HUD approval. Agents generally need to watch a few hours of video instruction, then they’re handed the keys (or the lock box code).
HUD’s $1 Homes
February 7, 2008
What happens to HUD properties that aren’t sold? After six months on the auction block, HUD sells these homes to government agencies for a dollar.
The HUD website explains:
“By selling vacant homes for $1 after six months on the market, HUD makes it possible for communities to fix up the homes and put them to good use at a considerable savings. The newly occupied homes can then act as catalysts for neighborhood revitalization, attracting new residents and businesses to an area.
Local governments can partner with local nonprofit homeownership organizations or tap into existing local programs to resell the homes to low- and moderate-income residents of the community.”
There’s no way to get such a great deal from HUD yourself. But, if you (or someone you know) qualifies as a “low- to moderate-income resident,” you may be able to buy previous HUD properties at a discount from your community.
Detroit Offering Great Deals on HUD Homes for Sale
February 7, 2008
Where can you find a 2br/2 ba cottage for less than $10,000? Detroit. It may not be the most popular place to live right now, but HUD homes for sale in Detroit are priced amazingly low. Check out the stats on HUD home:
$6,800.00
2 bed, 1 bath
4 rooms
751 sq. ft.
built 1940
That’s one way to use your tax refund! Of course, this house is listed as “uninsurable” and it’s not in the best area.
As people are leaving auto-city, a few brave investors are taking the risk of buying up properties. The hope is that the city will revive and home prices will go up, once again.
If you have a bit more money to throw at Detroit HUD foreclosures, you can find a lot of insurable properties for less than $50,000.
New Charity Buying HUD Foreclosure Homes
February 6, 2008
Robert Costanzo has a big plan for his charity: purchase HUD foreclosure homes and create safe housing for low-income residents. TimesLedger.com reports:
“His nonprofit group, Be Safe At Home, focuses on providing seniors in the tri-state area with handymen, home maintenance and shopping services so they can continue living in their homes.
But Costanzo hopes soon to start buying foreclosed homes and turning them into affordable housing for seniors.
By converting residences purchased through the HUD foreclosure program, Costanzo said he will be able to provide housing and services for seniors at a lower cost than nursing homes or Section 8 housing assistance.”
Although anyone can bid on HUD foreclosure homes (regardless of income), many charities are finding that these auctions can save them a substantial amount of money.