Friday, January 11, 2008

How Do you Buy HUD Homes?

HUD homes are marketed almost the same way as any other listed property.

In each city, a designated HUD broker is in charge of all HUD home listings. When the HUD home becomes available it is listed on the MLS. There is also additional information about the HUD home on the website of the law firm in charge of the transaction. In most states this site is www.Mcbreo.com

You must purchase a HUD Home with the help of a Real Estate Agent. Any participating broker will work. When you are interested in the house you must fill out a valid real estate purchase contract, write an earnest money check with certified funds, and then make an electronic bid online. If the electronic bid is accepted, then your real estate broker turns in the required earnest money check and paperwork. One interesting thing about online HUD bids is that the real estate agent can choose their commission. HUD cares most about how much money they will net, so the more your agent charges, the more you will likely have to pay for the property.

HUD properties very often have multiple offers. It is not uncommon for HUD to be purchased for more than the listed price. HUD does not have to accept any bids, and won't accept bids if they are extremely low, even if you are the only bidder before the deadline.

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