Learn About some Common Types of HUD Homes
When searching for HUD homes for sale, most people find that there is no shortage of inventory. Before making a purchase, it is essential to learn more about the many types of properties that fit into this category.
HUD properties were originally purchased using an FHA loan. When the borrower defaults on the loan, the end result is a “HUD home”.
Since the FHA guaranteed the loan, once the foreclosure process is complete, the FHA pays off the lender. With all this in mind, the property is not given back to the lender as would be the case with a traditional foreclosure. Instead, it goes back to the owner of the home, which is HUD, and they can then sell the property.
HUD Owned Homes
There are many common types of HUD homes for sale. These include but are not limited to the following:
Remember: When searching through HUD foreclosures, it is important to pay attention to the following details:
- Asking price
- History of the property
- Whether or not there are any liens
To protect yourself against a poor buying decision, find a realtor who is registered with HUD. Along with this, be sure that the realtor has experience with government foreclosures including the process involved with making an offer.
Searching for HUD Homes for Sale
Although your realtor can help you search for HUD houses for sale in your area, you can also do so on your own through the internet. Foreclosure listings can help you find cheap HUD homes throughout the country, complete with detailed information on everything from making an offer to special financing programs and much more.
An HUD REO listing with the following information will help you make a better decision:
- Listing period
- Bid open date
- Number of bedrooms
- Number of bathrooms
With so many types of HUD homes for sale, those who are interested in buying a government foreclosure are in position to compare multiple properties before making a decision.