In our Sacramento region real estate market a fair number of homes available for sale are bank owned properties which have gone through foreclosure. The process to purchase a bank owned property is, for the most part, not much different than a normal purchase. Over the next few years the number of foreclosed homes owned by HUD is expected to increase and the process of buying from HUD is very different and can represent excellent value for buyers.
What is a HUD Home?
A HUD home is a residential property acquired by the U.S. Department of Housing and Urban Development (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 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 do I find a HUD Home?
HUD Home Store is the listing site for HUD real estate owned (REO) single-family properties. This site provides the public, brokers, potential owner-occupants, state and local governments and nonprofit organizations a centralized location to search the inventory of HUD properties for sale.
How do I buy a HUD Home?
To buy a HUD Home you must work with a HUD registered real estate broker who can place bids on behalf of their clients. The process of buying a HUD home is significantly different from other sales and your registered real estate broker can explain how to place a bid and monitor for acceptance.
What about financing?
HUD does not provide direct financing to buyers of HUD Homes. Buyers must obtain financing through either their own cash reserves or a mortgage lender. If you have the necessary available cash or can qualify for a loan you may buy a HUD Home.
Over the next year, I believe, we will see an increase in the number of HUD Homes available. As of today, I found 22 listings in Sacramento County and 4 listings in Placer County. They ranged in price from $100 to $300,000.
We specialize serving the needs of buyers and sellers of homes in the Roseville and Sacramento area including Sacramento, Placer, El Dorado, Sutter and Yuba counties.