What is a HUD Home?
A HUD home is a 1 to 4 unit residential property acquired by HUD as a result of a foreclosure action on an FHA-insured mortgage. HUD becomes the property owner and offers it for sale to recover the loss on the foreclosure claim.

Who can buy a HUD Home?
Almost anyone! If you have the cash or can qualify for a loan (subject to certain restrictions) you may buy a HUD Home. HUD Homes are initially offered to owner-occupant purchasers (people who are buying the home as their primary residence). Following the priority period for owner occupants, unsold properties are available to all buyers, including investors.

How are HUD Homes sold?
New listings are available weekly on Friday mornings. During the Initial listing period, bids may be submitted by Owner Occupants only during the first 10 calendar days.

All Owner-Occupant offers received during this 10 day Exclusive Listing, shall be considered to have been received simultaneously. In order to be valid for the period, bids must be completed and confirmed on the Internet.

Owner-Occupant bids will be opened and reviewed and the highest acceptable net bid to HUD will be selected. Bids will be reviewed and posted at 1:00 p.m at the conclusion of the 10 day Exclusive listing period.

At the conclusion of the 10-day Exclusive Listing Priority Period, all general public bids will be accepted. These bids will be reviewed and the highest acceptable net bid to HUD will be selected. In the event the property remains unsold after these bid openings, daily bids received by 11:59 p.m. will be reviewed and results will be posted the next day at 1:00 p.m.

Bids received on the same day shall be considered to have been received simultaneously.

Friday, Saturday and Sunday bids will be reviewed simultaneously on Mondays at 1:00 p.m., and the highest acceptable net bid to HUD will be selected.

In the event the property remains unsold, the bids (Owner-Occupant and General Public) will be reviewed and posted daily at 1:00 p.m. and the highest acceptable net to HUD bid shall be selected. This listing will remain in effect until the listing has been sold or withdrawn from the market to be reanalyzed. Bids must be completed and confirmed on the Internet before 11:59 p.m. in order to be valid for that day and will be opened the next day excluding Friday, Saturday and Sunday which will be opened on Monday.

Earnest Deposit
$1,000 for offers greater than $50,000; (not to exceed $2000).  $500 for offer less than $50,000. 

Closing Costs
You can ask HUD to pay closing cost of up to 5% of the purchase within the bid.  HUD pays the real estate broker's commission, if include in the contract. (it will be included in the contract).

Should I get a home inspection?
All HUD Homes are sold AS-IS, without warranty. HUD will not make repairs nor pay to correct any problems.  It is a very good idea to have an inspection done after your offer is accepted.  This is a Buyer's expense.  Inspections typically cost around $250-$300.

What about financing?
Although HUD does not offer financing directly, some of our homes qualify for FHA-insured loans.