HUD Foreclosure Properties – What Makes Them Unique

Time icon March 31st, 2006 by Autor Joseph Smith

HUD foreclosure properties are simply properties on which the previous mortgage has been insured by the Department of Housing and Urban Development (HUD) or by the Federal Housing Administration (FHA). HUD foreclosure properties have been legally repossessed because the previous owner defaulted on their mortgage. In most cases, the HUD purchased these homes from the lender in a Trustee Sale and is now offering the HUD foreclosure properties for sale to the public or to investors in order to recoup the money it had to pay to the lender. You can usually save up to 40% on the value of HUD foreclosure properties.

What Are the Benefits of HUD Foreclosure Properties?

Investors and homebuyers alike love HUD foreclosure properties for number of reasons:

Price. HUD foreclosure properties are priced to sell fast, because both the lender and the government want to recoup the money they have already spent on the defaulted loan. Since holding onto HUD foreclosure properties is often more expensive for the government or lender than selling them a deep discount, most HUD foreclosure properties are sold at below market value. Plus, HUD foreclosure properties are not always advertised and not always sold by professionals, which means lower prices. Some HUD foreclosure properties require minor repairs and cleanups because the previous owners may not have been able to maintain the place, a fact that further pushes the price down.

Speed of purchase. HUD foreclosure properties are already vacant and the closing date on HUD foreclosure properties is usually very soon. This means that when you buy HUD foreclosure properties you can move and almost right away and start enjoying your property that much sooner.

Fast equity. Many HUD foreclosure properties do not show well because they have been vacant for some time. In some cases, the previous owners did little work for years to the house. This not only pushes the price down, but allows you to build fast equity simply by repairing and cleaning the property.

Special programs. If you are a law-enforcement officer, firefighter, or teacher, you can often buy HUD foreclosure properties for even less, since the HUD has special programs available for these professions.

Closing costs. If you buy HUD foreclosure properties from a real estate agent or broker, and insert a clause into the real estate contract stating that the government will pay for the closing costs, you can save up to 6% of the purchase price on closing costs. HUD will pay these costs for you.

Low money down. You can get a certificate from HUD that allows you to purchase HUD foreclosure properties for only a few hundred dollars down.

No hassle. You can place bids on HUD foreclosure properties through HUD approved real estate agents or brokers. You don’t really need much more paperwork or work in order to buy these low-cost HUD foreclosure properties.

Easy financing. Since HUD foreclosure properties are priced so low and since you enjoy equity almost from the start, is easier to qualify for a mortgage or home loan on most HUD foreclosure properties, even if you have bad credit.

Are HUD Foreclosure Properties Really for Me?

HUD foreclosure properties can be found in almost every neighborhood and state across America. If you are considering buying real estate for yourself, for a home, as a secondary home, or as an investment, HUD foreclosure properties allow you to buy more property for less money, allow you to enjoy more equity, and allow you to save tens of thousands of dollars. Isn’t your money better used on yourself rather than sunk into a property?

The truth is, everyone considering purchasing real estate owes it to themselves to check out all their options. Many investors and homebuyers pretty quickly realize that HUD foreclosure properties are a better option for almost any buyer. In the past, it may have been hard to find the best HUD foreclosure properties, but today you have no such excuse. ForeclosureDeals.com easily allows you to hunt for the best HUD foreclosure properties across the country.

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