Buying a HUD Home . . . My name is Robb Spearman and I am a licensed real estate broker in the State of Iowa. Over the last 15 years I have been listing and selling HUD (The United States Department of Housing and Urban Development) Homes.
What does that mean? I have been in charge of marketing these homes in the State of Iowa. My job description is to be the resource for the Realtor and Buyer. If they have a question or a problem… they call my office.
Over the last several months we have been overwhelmed with telephone calls. That is the reason for this website. We thought this would be a good resource to answer those questions.
What is a HUD Home? A HUD Home is a bank foreclosure that was financed with a FHA mortgage. A Mortgage loan insured by the federal government (HUD). HUD pays the bank after the home is foreclosed upon. The bank got their money. HUD got the home. Now HUD needs to sell the home.
How do you find listings of HUD Homes for sale?
Here is how it works . . . . Several years ago HUD decided to outsource the marketing and management of their foreclosures. HUD divided the United States into several regions. Each region is assigned a marketing and management company (M & M).
Where do they post listings? HUD requires the M & M to post what is for sale at HUD Home Store website. It is simple and easy. New listings are posted daily. All you need to do is check the website to see what is for sale.
As you can imagine, HUD is a huge government agency. Years ago they came to the realization that it’s just not feasible for them to oversee all the HUD homes and make sure they are marketed and managed properly. So how did HUD handle this situation?
How to look at HUD Homes
Only a HUD approved broker may show you a HUD home. And not all real estate agents work for a broker that is HUD approved, so it’s important for you to make sure you work with someone who can show you all properties that fit your needs and can help you find the right home for you! Can you research available HUD Homes online and drive by them? Sure! But you cannot obtain entry into the home without that HUD approved broker so you’ll find that it may be more time-efficient to work with a HUD Broker. In fact, at no point during a HUD home transaction can you visit the interior of the property without the assistance of your broker.
Who Can Buy a HUD Home?
Almost any person can purchase a HUD home. If you have the cash, you’re a sure bet to buy a HUD home. If you can qualify for a loan, there are a few restrictions, but it’s quite likely that you too can buy a HUD home.
HUD prefers the homes be bought as owner-occupied. They want you to buy the home and live in it. So they give initial preference for those who will be buying it as a primary dwelling. If the property sits on the market, however, HUD will eventually offer the home for sale to those buying as investors.
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