How to Buy a HUD Owned Home
Best Home Bargains in Northern Nevada and Surrounding Areas
What is a HUD Home?
A HUD Home is a foreclosed property that has been conveyed to the U.S. Department of Housing and Urban Development (HUD) when the homeowner fails to make payments on their FHA insured mortgage. The lender acquires the property, submits an FHA insurance claim, and then conveys ownership to HUD. A HUD Home can be a single family residence (SFR), townhouse, condominium, mobile home or multiple family attached home up to 4 units.
Click here for a FREE HUD Home Photo List of Washoe and surrounding counties
Please note, this photo list is updated weekly, on Friday evenings.
Is the Process More Difficult to Purchase a HUD Home?
It's just as easy, if not easier, to make an offer on a HUD Home as any other available home in our market. All bids for HUD owned homes are submitted online thru a HUD-registered real estate professional. Once a bid is accepted, the escrow period is for 45 days, allowing plenty of time to execute due diligence for inspections and loans.
In the current Northern Nevada marketplace, it is not uncommon for 35-50% of our given inventory to be short sale listings, which can take over 4 months to close escrow, with no guarantee that the bank will approve the sale. On the contrary, purchasing a HUD Home is a simpler, more streamlined option to home purchases in today's market.
Who Can Buy a HUD Home?
HUD Homes may be purchased by an individual, company, HUD-approved non-profit organization or government entity. Just as with the purchase of any properyt, a purchaser must qualify for a mortgage or pay cash to buy a HUD Home. Interested buyers must submit their bids through a HUD-registered real estate professional.
There are two types of HUD Home purchasers: Owner Occupants and Investors. An owner occupant buyer is a person who will live in the property as their primary residence for at least one year and has not purchased another HUD Home as an Owner Occupant for two years. Investor buyers are people who purchase the property as an investment or as a second home, or who do not qualify as an Owner Occupant.
When and Where Can I Place a Bid on a HUD Home?
When a HUD Home is first listed for sale, priority is given to owner occupants, non-profit organizations and government entities. This is called the "Exclusive Listing Period". How long the Exclusive Listing Period lasts will vary depending upon the property's FHA insurability.
If the property is being sold as Insured (IN) or Insured with Escrow Repairs (IE), the Exclusive Listing Period is 30 days. All bids received during the first 10 days are held and opened simultaneously on the 11th day of the Exclusive Listing Period. If there is no winning bid, bids will continue to then be reviewed on a daily basis until the end of the 30-day period.
If the property is being listed as Uninsured (UI) or Uninsured 203(k) eligible (UK), the Exclusive Listing Period is 5 days. Bids received during these 5 days are considered to be received simultaneously and will not be opened until the 6th day of the Exclusive Listing Period.
When the Exclusive Listing Period expires, unsold properties then enter the "Extended Listing Period" and become available for all purchasers, including investors. The bids are opened and reviewed daily (on the following business day after submission) until an acceptable bid is submitted and accepted.
How Can I Find a HUD Home?
Available HUD Homes are listed on the local MLS (multiple listing service) as well as on the HUDHomestore.com website. A HUD-registered real estate professional can arrange to show you HUD Homes.
Click here to search all available HUD Homes in Nevada and Nationwide.
If you are interested in searching for HUD Acquired Homes, or if you need additional information regarding FHA's insurability, qualifying for a loan, or any other information on the HUD Home process, please email [email protected] for additional information.
The Farmer Moylan Team
Helping You Move Forward With Your Needs
