How to bid on a HUD home

The houses of the Department of Housing and Urban Development USA (US Department of Housing and Urban Development, or HUD) are available throughout the United States. The HUD home can be sold without an auction minimal. Usually provide a means for families with limited incomes to repair a house and then occupy a lower cost of market value. If you are interested in buying a house the Department of Housing and Urban Development, you need to know what steps to take to bid on a HUD home.

  1. Find a real estate agent that has been approved by HUD and HUD asks to see houses in the area. Meet with the agent to discuss what you want in a home. HUD does not deal directly with individuals and only accepts bids from qualified agents.
  2. Get a pre-qualification and determines how much money you can spend on a HUD home. Make sure you can afford the house and you can make the down payment. Make sure you have cash to buy a house and be eligible for a mortgage.
  3. Find a house you like and do your homework on the houses available in your region. Get an idea of ​​how out houses in the area.
  4. Check when HUD auctions are done in your community. Most cities make once or twice per month.
  5. Presents a bid by your realtor. The HUD-approved agent can help you complete your form. Depending on the condition of the house, your bid may be sealed during processing. Your bid will only be available for viewing by HUD officials the day of the auction. It should include a deposit or money upfront. Deposit amount will vary based on the region. Your real estate agent should give HUD the deposit amount to do with your bid.
  6. Wait notification regarding your bid. If you’ve done successfully, you will be awarded between 30 and 45 days to arrange the financing. Ensure funding approval before the event can help you close the deal in your home faster.
  7. Get a home inspection once the HUD accepts your bid. Most HUD homes are sold only as it is and often need extensive repairs that may need to be done before you move or even close, depending on the state of the house. Note that when HUD homes need repairs, will sell for less than market value for buyers to recover the costs involved in making repairs.