Consider buying a HUD Home. What is a HUD Home?
When a homeowner with a Federal Housing Administration (FHA) insured mortgage can't meet the payments, the lender forecloses on the home; FHA pays the lender what is owed; and then the United States Department of Housing and Urban Development (HUD) takes ownership of the home. Then HUD sells it at market value as quickly as possible. Michaelson, Connor & Boul, Inc. (MCB) is a marketing and Management contractor for HUD (1 to 4 unit residential properties). MCB contracts with listing brokers around the country to assist in the marketing and listing of these properties through the local Multiple Listing Services.
Prudential Americana Group, Realtors is a Local Listing Broker for HUD homes with HUD Registered Real Estate Agents. We are trained and experienced with the nuances and requirements for submitting offers to purchase to HUD.
Perspective purchasers MUST be accompanied by a broker or agent when viewing any HUD home listed for sale. Buyers may not enter a house without their broker/agent for any reason prior to closing. Brokers and/or agents must accompany any individual performing services such as home inspections, appraisals, or certifications. Keys are not permitted to be lent to any other individuals associated with any sales transactions.
Who can purchase a HUD Home?
Any individual who can qualify for a mortgage or who can pay cash may purchase a HUD home. Purchasers must use a broker or agent who is registered with HUD to place a bid on a property. Purchasers must also have a pre-qualification letter from a lender or proof of cash funds in the amount of or greater than the property they are purchasing.
How are HUD Homes sold?
All HUD Homes are listed on MCB at their "AS-IS" fair market value. Purchasers must obtain the services of a HUD Registered Real Estate Agent. Agents may submit bids on HUD properties on behalf of their buyers. The bid that mets the acceptable threshold and has the highest net to HUD receives a provisional bid acceptance subject to receipt of all required documents. Once a bid is accepted an original Sales Contract Package must be subitted to MCB within 48 hours.
How is Fair Market Value determined?
Fair Market Value is determined by a licensed FHA appraiser. Copies of the FHA appraisal are available to the lender by request after a property is under contract. If a property is exposed to the market without any acceptable offers then a reduction of the listed price may occur.
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