March 20, 2017
Many people get a sizable tax refund each year. Some have big plans for their new found money, while others throw it away to everyday life. Have you ever thought about investing your money in yourself by purchasing a HUD home.
HUD homes often get a bad name for being run down and not updated but in most cases that is not true. Many HUD homes just need some cosmetics such as new flooring, fresh paint and some new landscaping. These are things that you would probably do anyway when purchasing a home, aren’t they? Pricing of HUD homes is based on a recent appraisal and offered for sale at a fair market value; meaning HUD prices these homes to sell quickly, which means you can get a good deal when you purchase a HUD home.
HUD homes are sold “AS IS”. When a property is sold “As Is” there are no warranties, guarantees, or representations about the property, FHA Insurable or otherwise and there are no repairs. The only exception is for the property to be safe, secure and marketable. Home inspections are optional, but highly recommended and there are certain guidelines you have to follow. One guideline is arranging, through your real estate professional, to have the utilities turned on and then off again once the home inspection is complete. This is the buyer’s responsibility financially.
You can search online for available HUD homes on www.HUDHomeStore.com. This database allows you to search by state, county or zip code. Once you are on the site, you can view interior and exterior pictures of the homes, the price, a property condition report and other information regarding the home. All HUD homes have bidding periods in which you can place your bid electronically with help from a real estate professional. The bid period is also listed on the website.
HUD Homes can make great homes for first time buyers or those that want an investment property. Bidding priority is placed with preference for owner occupancy but investors can bid on any property after a period of time if it is still on the market.
If your bid is accepted, there is a contract that needs filled out and sent to SAGE Acquisitions within a few days. Also at this time, your deposit is required. This deposit can be either $500 or $1000 and is based on the price of the home. You will also select a closing agent that is typically a title agent or lawyer to prepare all the closing documents. Closings can occur as early as 30 days after an accepted contract for cash buyers, 45 days for FHA/Conventional loans and 60 days for FHA 203k financing.
Having all required documentation available at the time of the bid process will make the process run smoothly and on time. Purchasing a HUD home can be a wonderful experience and a wise investment for your future. For additional information on the HUD process visit www.HUD.gov
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