Most of us know HUD stands for – Housing and Urban Development and that it is a government agency. But here is what you may not know…
HUD was established in 1965 to help develop programs and policies regulate housing needs and bolster the housing market. They offer assistance and other programs that help with fair housing, consumer education and insurance that helps with government backed loans. I particularly like their interest in revitalizing great neighborhoods.
So now that you know a teeny bit about HUD, what exactly is a HUD home? A HUD home is the result of a default on an FHA insured home where the lender gets the insurance and HUD acquires the home with a clear title. HUD sells these homes “as is” at a fair market value.
Since HUD homes may have damages that require repair, HUD will present results from an inspection that detail repairs and estimated repair costs so that potential buyers are aware up front of the money required to fix the home and have it move in ready.
HUD homes are not “low income” or “low priced” homes – they come in all shapes and sizes and a variety of price ranges. Unique to a HUD home is the buying process. A HUD registered broker is required to help buyers “place bids.” There is usually a very short timeframe for the bidding process and sometimes, there are exclusions for periods of time, too. One such “exclusion” is the GNND program.
The GNND or Good Neighbor Next Door program allows full time teachers, police and fire officers to purchase a select HUD home at half the price! When a HUD home falls into this category, others cannot bid until the lottery period for the GNND program times out. It is a daunting process the first time through it, but quite interesting and a great opportunity for home owners and investors alike.
While I have just scratched the surface of HUD homes, I hope it gets you excited enough to learn more about them – check out http://www.hudhomestore.com for more information or call me and I would be glad to help you navigate the HUD home maze!