I want to buy a low cost home here in Dallas (under $85K). Yes, I know that is funny. Most of the homes I qualify for seem to be HUD homes. There seems to be a "system" that I am not aware of in terms of actually scoring one. Realtors with HUD listed homes haven't returned my emails or phone calls (much). I would appreciate any advice from anyone who knows much about HUD, especially a realtor. I desperately want a decent house in a fairly decent neighborhood, I'm tired of renting!
I don't know that much about buying a HUD home, but I found a website that I think might help you find a house.
HUD homes are actually foreclosed homes and are owned by Housing for Urban Development, a subsidy of the federal government. In order to purchase one you must do the following:
1) You must have an approval letter from a lender (bank or mortgage broker) stating that you are qualified to purchase a home. They will tell you how much you can afford.
2) If you are paying cash for the home you must have a recent bank statement, 401K statement or other proof that you have cash to pay for the home.
3) HUD homes have to be bid on (sort of like an auction but done on the internet by a licensed realtor) and you will not be the only one bidding for the same home. When you find the home that you want to purchase try to get as close to the asking price as you can because, remember, others are also trying to get that same home so you do have competition.
4) Go to one of your local real estate offices and ask a licensed realtor for a list of the HUD homes that you are qualified to buy. You and the realtor can work together and decide which ones you will go see. Once you chose the home you want the realtor will put in the bid for you on the internet. If you bid way too low HUD does not have to reply to your offer. If you are close to the price HUD expects they will either counteroffer or accept your offer and they will let your realtor know you have won the bid. Then you will have only 24 hours to get a cashiers check for an initial deposit of $500 or $1000 made out to HUD and take it to the realtor and she will have you sign a contract and she will federal express everything out to HUD for you. The realtor you are using will inform you of the rest of the process until the closing date.
5) Just remember that most of the HUD homes need work, some of them are missing all of the appliances, some are missing the light fixtures and ceiling fans and in some instances the air conditioners are missing. You must decide what you can afford to replace or fix after the closing.
6) If you do not have my #1 or #2 done there is no sense in checking HUD homes out. You must prove to HUD first that you can afford to buy a home.
7) I hope these basics help you out and yes, I am a licensed realtor.
I have a home in Cedar Hill that I will sell you for $78,000. A three bedroom, 1 1/2 bathroom, 10 min. from lake and less than that to shopping mall. Email meat firstname.lastname@example.org if interested. I have renters in there now.
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