What is A HUD Home Anyway???
July 13, 2009
You may have seen the signs on street corners and at neighborhood entrances announcing “HUD Home for Sale”. These rather “governmental” looking signs often stir up curiosity and in many cases concern in the community. With the tremendous volume of foreclosures in Gwinnett, these have been popping up everywhere! Because of that, many people have asked me to explain, so here you go.
Be not afraid of the HUD home. When people ask me “What is a HUD home?”, I often ask them what they think it is. The answer I get most is section 8, government subsodized, low income or similar. While I understand how people have come to think that, it is simply not true. Are you ready?? Here it is…straight from HUD.
“A HUD home is a one-to-four unit residence acquired as a result of a foreclosure on an FHA insured mortgage.” from HUDPEMCO Agent Guidebook
See? Nothing to fear. Hud homes can be found in any community which has had an FHA insured mortgage go “back to the bank” in this case, the Federal Government by way of HUD (US Department of Housing and Urban Development). In most Metro Atlanta counties, the FHA loan limit is $346,250.00. This means that most homes commonly in the mid $300’s and below can be mortgaged using FHA. So, HUD homes can be extremely varied in price, location and condition. Did you know that 60% of Georgia HUD inventory is located in Metro Atlanta? Actually, my experience has been that HUD homes are typically better secured and lawns better maintained (monthly) than many bank held properties (but that’s another post for another day). HUD may not come in and make the house pretty, but effort is made for health and safety’s sake.
As is customary for foreclosures, HUD homes are sold on an “AS IS” basis. HUD is committed to providing “safe, secure and marketable” properties. HUD pricing has been adjusted with the consideration of current area market performance and condition of property. With this in mind, they will not agree to repair cosmetic items, however issues directly relating to safety are usually corrected.
Anyone can buy a HUD home, even investors. HUD properties can be viewed by anyone at their official site, however offers can be submitted only by working with a HUD-Registered real estate agent. During the initial offering phase, owner occupants are given first option when bidding on a HUD property. Also, there is a Good Neighbor Next Door Program which provides assistance for those who serve our communities as firefighters, EMT’s, police officers, and teachers Pre-K through grade 12.
So, tell your friends, tell your family and, if you’re looking to buy in Gwinnett, Hall, Barrow or Jackson – tell ME! I’ll be happy to show you a great HUD home, today!
Comments and questions are welcomed and appreciated!