Buying a HUD home in Crown Point Indiana
I had the opportunity to show two townhomes that happen to be HUD properties. They where both very nice and extreme bargains when compared to other townhomes in the same complex of the same style. My client asked me, "how do you buy a HUD home?" So, I thought I would do a brief description of the process for other buyers who have wondered about this unique buying opportunity.
First of all, a HUD home is a home that was financed with FHA backing and has gone into foreclosure and now belongs to HUD. Buying a HUD home requires the same financial qualification that any other home buying does. You need to be pre-approved for a loan or have proof of cash funds if you intend to pay with cash. Once the funding is secure and you have found a HUD home that you wish to purchase it is a simple process involving online bidding. You must use a HUD registered Real Estate Agent who will do the online bidding for you. The online bid is a simple one page form which includes the offer, the buyer's information and the property information. The bids are reviewed by HUD each day usually by 1 pm Monday through Thursday. Bids placed on the week end are reviewed on Monday. Newly listed properties have a 10 day reserve for non profit organizations, government agencies and owner occupants. This means that these groups have priority over investors for the first 10 days of the listing. All of these bids are reviewed at the same time at the end of the 10 period.
When your bid is chosen you are then required to submit a full purchase agreement along with your certified check for the earnest money. This all has to be turned in within 48 hours after your agent is notified of your winning bid. Your agent will usually send these documents by over night delivery to be in the HUD offices before the 48 hours has expired.
At this point it is a matter of getting the inspection done, getting your loan application completed and the time required for HUD to secure clear Title for the property. There can be more paperwork with a HUD property, but an agent with a little experience or good support from an experienced manager can make it a smooth process. Do not expect the seller to do any repairs and do expect some limitations on financing. Most of these circumstances can be worked through and make buying a HUD home a good deal for the home buyer.
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Marilyn S. Tolhuizen, N W Indiana Real Estate Specialist
McColly Real Estate, Realtor, GRI, ePro
Crown Point, Munster, Dyer, St. John, Schererville, Winfield, Merrillville, Hobart, Portage, Hammond, Cedar Lake, Lowell, Lake of the Four Seasons, Demotte, Hebron, Wheatfield