Buy Hud Homes in San Diego
San Marcos HUD HOME Just went into escrow-leave me your contact information in case falls out escrow
Buy Hud Homes in San Diego with Pete Cannon a certified Hud broker specializing in selling Hud, foreclosure properties, bank homes and investment properties to investors and through sound property management can establish cash flow for retirement. Hud properties are ideal for first time buyers who can fix-up, live in these properties as a stepping stone for other investment properties down the road.
UD homes are properties where buyers obtained FHA financing which government is financing that offers a low down payment of 3.5% and this FHA loan is guaranteed by the government so that when the homeowner defaults Hud-FHA then pays that lender off so they do not lose any money. When these homes are foreclosed on and sold back to HUD at the foreclosure auction then they become HUD owned homes or government owned homes. After HUD receives title then HUD places the home on the market for sale with a Real Estate Broker. You cannot buy a HUD home directly from HUD. HUD properties are listed with Real Estate brokers and placed on the multiple listing services for sale. The best way to find out about HUD properties is to find a certified HUD broker who will submit a bid for you and give you advice.
Only licensed broker who are certified with HUD can sell HUD homes to the general public, however registered non-profit organizations and government entities may submit offers without the use of a broker. HUD gives priority to owner occupants however anybody can buy a HUD home. Owner occupant by HUD is some who has not purchased a HUD home in the last 24 months and someone that will occupy the property. Falsifying owner occupant status is considered a felony and subject to a $250,000 fine (18 U.S.C. 1010,3559;3571).
When HUD properties are listed for sale they go into one of the following categories:
IN (Insurable)-qualifies for FHA Financing.
IE (Insurable with escrow)-qualifies for FHA financing with repairs of $5,000 or less. These repairs will be responsibility of buyer but can be added to loan amount.
UI (Uninsurable)-these properties do not qualify for FHA financing. These properties typically have repairs exceeding $5,000.
UK (Uninsurable)-these properties do not qualify for FHA financing FHA 203b but will qualify for FHA 203K which is an FHA program that allows you to add repairs over $5,000 to the loan.
To submit a bid you must be pre-approved by a certified HUD lender and if you are paying cash you will need a bank statement proving you have funds in the bank to close. Bids are submitted through HUD’s website by a certified real estate broker. Bids must be submitted by 11:59 PM CST by the bid deadline date.
All uninsured (UI) and uninsured -203K eligible (UK) properties are assigned to a lottery program for 7 days. Also properties in designated Revitalization areas are also assigned to a lottery program. These properties are only available to good neighbor next door (GNND) participants and HUD approved nonprofit organizations and government entities. A government entity usually includes school teachers, and law enforcement. These properties are not listed in MLS and must be submitted through HUD website hudhomestore.com. These offers must be full price and HUD does not pay commission or closing costs of these properties.
The good neighbor next door (GNND) program offers properties in designated revitalization areas at a 50% discount.