It’s a Great Time to THINK HUD!

What is a HUD Home?

When someone with a HUD insured mortgage can’t meet the payments, the lender forecloses on the home; HUD pays the lender what is owed; and HUD takes ownership of the home. HUD then sells the home at market value through a Marketing & Management Contractor such as PEMCO.

How can I find a HUD home?

HUD homes are listed on our website and in the local MLS.

How can I buy a HUD home?

Buyers must use a broker or agent who is registered with HUD to place a bid on a property. Owner occupants must live in the house as their primary residence for at least one year and may not purchase another HUD home as an Owner Occupant for two years. Bids can be submitted any day of the week, including weekends and holidays. They will be opened the next business day. The results from the review of all accepted bids are posted on our web- site.

When can an Investor submit a Bid?

When a HUD property is listed to the general public, bids can be submitted by all potential purchasers (including investors), however, it is available to Owner Occupant Purchasers “only” during the initial priority period. All bids placed by Owner Occupants that are submitted during the first 10 day priority period are considered to have been received as though they were received simultaneously. If there are no acceptable owner-occupant bids during the 10 day priority period, then bidding becomes available to Owner Occupants on a daily basis until the priority period ends (30 days). Then it goes to the general public on a daily bid with no priority given to owner/occupant bids.

What is FHA financing?

(1) 203(b) Regular FHA Loan – Listed as “IN” • If the Property does not have any mandatory repairs FHA will insure the Loan hence the classification of “IN” (2) 203((b) – Repair Escrow – Listed as “IE” • When a property has less than $5000 in repairs to bring it up to Minimum Property Standards, FHA will insure the loan provided the repairs are completed by the Buyer or the Buyer’s agent within 90 days from the date of Closing.

Will HUD pay closing cost?

HUD will allow to be deducted from its proceeds, purchaser financing and closing costs that are considered to be reasonable and customary in the jurisdiction where the property is located. In no event may these costs exceed 3% of the property’s gross purchase price. Please refer to page 2 of your state/regional Forfeiture and Extension Policy for a list of the closing costs that will automatically be paid by HUD and other closing costs that may be paid by HUD.

Why do I have to get a Pre-Qualification Letter before I bid?

A Pre-Qualification Letter must be obtained prior to bidding on a property. This is to avoid having to tie up the prop- erty with a transaction that is unlikely to close. The Pre-Qualification letter must be directly from the lender (NOT the mortgage broker) giving a current date, purchase price, loan amount, and type of loan

Officer Next Door/Teacher Next Door

A Special Sales Program is the Officer Next Door/Teacher Next Door (OND/TND) program. The OND/TND Pro- grams offers HUD-owned, single family homes that are located in HUD designated Revitalization Areas will be made available to Law Enforcement Officers and Teachers at a 50 percent discount of the last listed price. Officer Next Door/Teacher Next-Door program participants are required to own and use their property as their sole resi- dence for at least three (3) years. The 50 percent discount will be applied at closing. Teachers must be employed in the school district that they purchase a home in under the Teacher Next Door Program.