Buying a SECRETARY OF HOUSING & URBAN DEVELOPMENT property can it be sold the same way a bank foreclosure?
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When a house goes back to HUD, it takes a while to get it on the market. First they have an initial property inspector go out and make a report,change the locks,check the electric,hvac,signs of leaks in the roof,foundation issues,etc. Then they send an appraiser like me out there. I make an appraisal of the properties value using what I find and the previous property report. They use my report to set the market or asking price. This then goes on their website. For the first 10 days, the bidders have to be owner occupiers for a least a year. If no one has a decent bid in that 10 days, it is open to all bidders. Then anyone can buy it and not have to live there. All bidding is made through an approved HUD Realtor. These are easy to find. Their fees are taken out of the bid you make. If the property is below $50,000 ,you have to have $500 down and a letter of pre approval from a bank or lender. If it is over,you have to put down $1,000 earnest money. As the previous answerer stated, do not bid on one that is in the owner occupied bidding time and then not live in it for the required time. They have no sense of humor about that and will prosecute you.The closing usually takes about a month to clear it all. The Realtor should be able to give you some minor info on the property condition and let you look at it and answer all other questions about the bidding process.
Sounds like you are asking if you buy a home out of a foreclosure owned by HUD if it can be sold as a HUD property for financing ?
If it still qualfies as a loan that way yes; the foreclosure won't affect that.
When HUD sells a house, they give priority to owner occupants (must live in it for a year). If no owner occupant wants the house, then investors may bid (they don't have to move into the house. Don't lie to HUD about your intentions. It could result in 10 years prison and $250,000 fine.
Hope this answered your question.
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