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HUD Home Listing | All HUD Home Listings Are Listed
Online!
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The HUD home listing process starts with listing the property on the Internet. All HUD foreclosed homes are listed on the M&M Contractor's website and on the HUD Home Store website at their "AS-IS" fair market value. My experience has been they are listed for everything but fair market value. Sometimes they are 10-20% below fair market value and other times over fair market value. If they are below market value, there will be numerous bids on it and your chance of getting a bargain is gone. Even worse could happen if it is above market value. If you or your real estate agent don't have the experience in HUD foreclosed homes, you could end up paying too much for the property.
I think now is the time to talk about one of the most important items about buying HUD foreclosed listings. You need to find real estate agent that is experience in HUD Homes for sale! An inexperienced agent can cost you thousands of dollars in mistakes. They might cost you your dream bargain home. Believe me, I have seen it over and over. You can ask most real estate agents if they do "HUD Homes". Of course they don't want to miss out on a commission, they will say sure they do. Some of the agents would have to go to their Broker-Owner and ask them what are "HUD Homes"! There are 40 agents in my office and probably only 4-5 agents have the experience to complete a HUD home listing tranaction. That means 90-95% of the agents could cost you money. Oh, by the way, you CAN NOT bid on HUD Home Listings without an real estate agent! So you need to find real estate agent that is experienced in HUD foreclosed homes. More on that later. The HUD home listing is listed at "As-Is Value" which means that a FHA appraisal has been done and the "As-Is Value" is the market value of the property in its present condition. Something that is very important to know is the "As-Is Value" and the FHA Appraisal value is the one and the same. That means if you bid more than the "AS-Is Valve" which is the initial listing price and you use FHA financing then you will have to bring the amount that you bid over the list price to closing. Again this is very important!
This is only if you use FHA financing! It does not apply to conventional or insured conventional financing. The actual bid your agent will make on the computer only takes about 15 minutes. It is very simple form that request basic information on the purchaser of the HUD home, what is your bid amount, how you are going to finance the purchase and are you requesting HUD to pay for any of the closing costs. But it is important that your real estate agent knows how much to bid on a property and how to fill out the necessary forms after you get the bid. If your agent is experienced in buying HUD homes, the HUD home listing process, the bidding and closing process should go smoothly.
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