To
purchase HUD Homes, a licensed real estate professional certified with HUD must submit your offer in the form of a competitive bid. HUD pays the real estate fee, not you.
Rod Rawlings has keys to all HUD listings, and can show them to you by appointment.
Before bidding, you must have:
1.
A letter from your lender stating that you are pre-qualified to obtain a loan for an amount sufficient to make the purchase. Or, if you are paying cash, you must show proof of cash.
2.
An earnest money deposit of $500 for properties priced under $50,000 and $1,000 for properties priced $50,000 and over. A cashier's check or money order is required, not a personal check.
Rod Rawlings participates in the Multiple Listing Service to find all residential properties listed by participating brokers, builders and sellers, including VA properties. When you are a customer, you can access all types of properties, not just HUD.
What is a HUD Home?
The Federal Housing Administration (FHA) is a department of HUD that provides
mortgage insurance on FHA loans, protecting the lenders against default by the
borrowers. If the lender must foreclose on the loan, FHA repays the balance of
the loan to the lender and the title to the home is conveyed to HUD. NHMS has
been contracted by HUD to re-sell these homes at market
value.
Where can I find
listings of HUD Homes for sale?
Just
CLICK HERE
to get current information. Lists can be updated daily. If you see any HUD homes that interest you in either Manatee or Sarasota county,
call Rod Rawlings at (941) 713-4446. You may also register to be
notified of new listings by email.
May anyone buy a HUD home?
Are there restrictions?
All HUD homes are offered for sale without regard to race, color, religion, sex,
national origin, handicap, or familial status. There are no income
restrictions. Anyone who is pre-qualified for a mortgage loan in an amount
equal to the purchase price minus down payment may make an offer to buy a HUD
home. These homes are not exclusively for low-income buyers, but most are
regarded as affordable for low to moderate-income purchasers within the market
areas where they are located. There is an initial period when only buyers who
plan to occupy the home as their sole residence (owner-occupants) are allowed to
make an offer (bid). After that time period passes, investors may also buy. No
employee, relation, or business associate of NHMS or its subcontractors is
allowed to purchase HUD properties.
If a house needs work, will HUD make the repairs?
No. HUD homes are sold as is, without warranty. This means that, although HUD
requires NHMS to maintain the properties against deterioration or damage, HUD
will not usually make repairs except to preserve and protect the property or to
eliminate a health and safety hazard. If any property condition defects are
known when the house is placed on the market for sale, the price takes those
defects into consideration. Please carefully examine the property you wish to
purchase and read the Property Condition Report that is provided as an
attachment to the detailed listing, as well as information that is posted in the
house itself.
How do I get the process started?
Start by finding a real estate agent or broker
who shows HUD homes in the
area where you are interested. The agent you select must work with a
HUD-registered real estate broker. Before you start, ask if the agent’s broker
is “registered with HUD.” If not, the agent is not allowed to show and sell
HUD
homes until they complete the registration process. HUD-registered agents can
help you with pre-qualifying for a home loan (mortgage), give you access to see
the available properties, fill in a Sales Contract and other documents that you
must sign, and submit an electronic bid on your behalf. Rod Rawlings is a
HUD-registered broker.
How do I make an offer on the house I want to buy?
Rod Rawlings will submit your offer in the form of an electronic bid. If your bid is the highest price offered to
the seller (HUD), minus closing costs and commissions (net offer), AND that net
offer exceeds the minimum amount HUD has set as an acceptable price for that
home, then yours is the “winning” bid, assuming all other requirements have been
met. Rod Rawlings will be notified and must DELIVER within 48 hours to the
appropriate NHMS office ALL the complete and correct documents that you have
signed, according to HUD requirements.
If my bid is accepted, what happens?
Rod Rawlings will help you through the
process from beginning to closing. You will be given a settlement date, normally within 30-60 days, when the transaction will occur. When you buy a HUD Home, Rod Rawlings' professional fee is paid by HUD, not by you.
As an investor, may I purchase a HUD property for rental or resale?
Yes. However,
only owner-occupant purchasers may make offers during the first 10
days that the property is on the market. They must affirm
in writing that they have not bought a HUD home in the last two years. They must
also agree to live in the home as their primary residence for at least one year
after closing. When the “Owner Occupant Only” listing period has past, then
investors may bid, and if they are successful, use the property for rental or
resale.
How can I get a loan to buy a HUD Home?
HUD
does not make loans directly, but
does have a number of mortgage insurance programs that could help you buy. Rod Rawlings can refer you to a HUD-approved lender who will take you through the steps
to
make the loan.
Is there anything else I should know about HUD Homes?
Homes built before 1978 may have lead-based paint, which can cause harm. Read about this hazard and what you
can do to correct it.
Edited from the original by
NHMS
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