Investing in HUD Home foreclosure
HUD home foreclosure is good program for those who are on lower incomes and may not be able to afford homes on the regular market price. It has opened up a whole new market of people who want to buy homes. Without this government program the housing industry would be narrowed down to those who are on higher income brackets. This would exclude a large and growing market of people on lower incomes. With the declining economy in the USA there are more people than ever before who need to take advantage of this government program.
What is a HUD home foreclosure? This is when the lender repossesses a home and the department of Housing and Urban Development takes it over. They will then try to sell the property at a lower cost than the normal market price. The agency only deals with repossessed houses. These houses are then offered to the public at significantly lower prices than the house would normally be sold for. Only specially registered real estate agents can offer these houses and there are special stipulations as to who can be eligible to buy theses properties.
The purpose of HUD home foreclosure program was primarily created to help those on lower incomes to be able to pay for a house of their own. These properties will give those on lower incomes a chance to buy houses that they would not normally have been able to afford. To keep real estate agents from taking advantage, these houses are only available to families who intend to stay in the house and use it for their primary residence. This ensures the validity of the program and stops greedy investors from undermining the program and snapping up the houses before the needy families can get a chance.
Before you purchase a HUD foreclosed home, consult a knowledgeable real estate agent. They will be able to walk you through any pitfalls that may be involved in buying the Ďas isí property. The real estate agent will also be able to walk you through the various steps of financing this kind of house. If you are a teacher or police officer, make sure you look into the special programs available to you in buying one of these properties. This is because there can be special concessions for those doing community services.
When you are ready to buy your HUD foreclosed home and have your financing in place, make sure you know when your bid is due. With the convenience of the Internet, an authorized agent can place bids right up to midnight of the night it is due. Make sure you print your bid so that you can easily locate it once the bid is placed. You also want to look for properties that are listed for ĎAll Purchasersí. Anyone can bid on these properties and the highest bidder is not always the bid that is accepted.
In review, do your homework before you start to look for a property that will be perfect for your house. Make sure you understand the rules and regulations in buying a HUD foreclosure home. Make sure you do not look at something that you cannot pay for and stay in your price range. Also, try and pre-qualify for you loan so that you know exactly how much is in your budget. If you follow these simple rules, youíll be able to get the great deal for a new house.
Back to San Diego downtown real estate article index