Buy a HUD home through Pete Cannon and get free flooring-click for details

 

 

 

Buy a HUD home through Pete Cannon and get free flooring-click for details

We're sorry, but we couldn't find MLS # 110065029 in our database. This property may be a new listing or possibly taken off the market. Please check back again.

Buy a HUD home through Pete Cannon and get free flooring-click for details

We're sorry, but we couldn't find MLS # 110065380 in our database. This property may be a new listing or possibly taken off the market. Please check back again.

 

 

 

HUD 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 to:

Officers

Teachers

Emergency Medical Techs

Firefighters

These buyers must meet some eligibility requirements but the main one is that they sign a silent note for the discounted mortgage amount that is removed after the buyer has lived in the property for 3 years. The main purpose here is to get get citizens to move into areas that need to be built up.

After the 7th day on the market HUD properties normally become available to owner occupants only and investors generally are not able to make offers until the listing status is changed by HUD to include investors. HUD will pay a certified broker up to 3% commission of the sale of the property. HUD will also pay 3% towards buyers closing costs but HUD accepts the offer that has the highest net to them. For example if the selling broker makes an offer on a property for $200,000 and takes a full 3% commission and the buyer asks HUD to pay 3% for closing costs than this total amount is deducted from the sales price and the net sales price that HUD looks at is $200,000 minus $$12,000 for commission and costs which leaves a net figure of $188,000. The $188,000 is the price HUD looks at.