Real Estate Investing: HUD Help
May 18th, 2011 -- by Ryan TuckerLooking for the ultimate real estate investment deal? Purchasing a HUD foreclosure —residential properties owned by the U.S. Department of Housing and Urban Development—can be a very affordable investment if you are aware of the limitations.
When a homeowner forecloses on an FHA-insured property, the government acquires that home as a HUD foreclosure or HUD home. These properties are either single- or multi-family residential properties, and are often sold at a low price through bidding. Because FHA-insured loans are becoming more popular among homebuyers who can’t qualify for other types of loans, there may be a subsequent increase in HUD homes in the near future.
A HUD home can be a hot investment with the potential for solid returns… as long as you know a few basic facts.
• A HUD home is put up for bidding, and for the first 10 days, only owner-occupants can make a bid. If the property does not sell after 10 days, then it is open for bidding from investors.
• If an investor wins a bid, the purchaser has to close within the time period outlined by the closing agent and the sales contract must be submitted within 2 days (48 hours).
• According to the U.S. Department of Housing and Urban Development, investors must have a valid Social Security Number (SSN) or Tax Identification Number (TIN) to bid on HUD homes.
• Investors will need to submit a pre-qualification letter from a certified licensed lender.
• Brokers, associate brokers and associated selling agents are required to register with the federal HUD website before submitting any bids. The website is HUDHomestore.com.
To search for HUD homes available in Tennessee (or in your area) and for more information on HUD homes, visit HUDHomestore.com.
Enjoy this post?
• Forward to a friend (Mail Link to a Friend)
• Become a fan on Facebook.
• Follow Invest in Memphis on Twitter.
• Check out our LinkedIn profile.
Interested in receiving a free weekly list of available investment properties in Memphis? Sign-up below!
