HUD sells properties that you might want to buy!
Question: What is a "HUD Home"?
Answer: When someone with a HUD insured mortgage can't meet the payments, the lender
forecloses on the home; HUD pays the lender what is owed; and HUD takes ownership of the home.
Then HUD sells it at market value as quickly as possible.
Question: Who can buy a HUD home?
Answer: Anyone! If you have the cash or can qualify for a mortgage, you can buy a HUD home.
Question: Are HUD Homes meant for people with low incomes?
Answer: HUD homes range in price, but most are affordable for low- and moderate-income
Americans.
Question: Is it true I can get a HUD Home for a dollar?
Answer: No. HUD sells homes at market value - that means that the price is set based on the price of
similar homes sold in the area.
Question: If the HUD Home needs repairs, will HUD make them?
Answer: HUD Homes are sold "as-is," without warranty. That means that HUD will not pay to correct
any problems. But even if a HUD Home needs fixing up - and not all of them do - it can be a real
bargain! For example, HUD's asking price on the home will reflect the fact that the buyer will have to
invest money to make improvements. HUD might offer special incentives such as an allowance to
upgrade the property, a moving expense allowance, or a bonus for closing the sale early. And keep in
mind that on most sales, the buyer can request HUD to pay all or a portion of the financing and
closing costs. Your real estate agent will have details.
We encourage you to get the home professionally inspected after your bid has been
acknowledged on the web site.
Question: How do I buy a HUD home?
Answer: Start by finding a HUD-certified real estate agent. Your real estate agent must submit your
bid for you, either by telephone or internet.
Normally, HUD Homes are sold in an "Offer Period." At the end of the Offer Period, all offers are
opened and, basically, the highest bid is accepted. If the home isn't sold in the initial Offer Period, you
can submit a bid any business day.
Question: If my bid is accepted, then what happens?
Answer: Your real estate agent will help you through the paperwork process. You'll be given a
settlement date, normally within 30-60 days, where the transaction will occur. We have an excellent
booklet to help you understand the settlement process: "Buying Your Home - Settlement Costs and
Helpful Information."
Question: How can I find out what HUD Homes are for sale?
Answer: Right here! Towerauctions.com has updated lists of HUD Homes for sale every day. If you
see one that interests you, contact one of the real estate agents in your area who show HUD homes.
They can help you from there.
Question: How can I get a loan to buy a HUD Home?
Answer: HUD doesn't make loans directly. But they do have a number of mortgage insurance
programs that could help you buy a home. You can read about those programs here. Then contact a
HUD approved lender, who will take you through the steps and actually make the loan.
Question: Can I buy a HUD Home as an investment?
Answer: Most HUD Homes are initially offered on a priority basis to owner occupant purchasers
(people who are buying the home as their primary residence). Following the priority period, unsold
properties are then available to all buyers, including investors.
Question: Is there anything else I should know about HUD Homes?
Answer: We encourage every home buyer and homeowner to be a wise consumer, so be sure to
read HUD's Consumer Information. Houses built before 1977 may have lead based paint, which can
cause harm to your family; so be sure to read about this hazard and about what you would need to do
to correct it.
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