The Department of Housing and Urban Development has the task of selling FHA foreclosed homes, and there’s likely one for sale in the location where you want to live. Plus, these homes come in all sizes, styles and price ranges, so you can probably find just the home that will suit your family’s lifestyle. And if you bid wisely, you could get the deal of a lifetime on Atlanta real estate!
The Equifax Personal Finance blog recently posted an article entitled “
4 Tips for Buying a HUD Home,” by real estate expert Ilyce Glink. Glink says the process is different from buying other foreclosures. First, you’ll need a real estate agent registered with HUD to place your bid for you. Glink says to search the HUD site for agents in your area who have already posted winning bids on behalf of clients, and start by interviewing them. Your agent should be able to tell you about the “offer period” bidding process, an online process unique to HUD foreclosures.
Glink also recommends that you make sure to tour the property before placing your bid. Take pictures and make notes so you can estimate the costs of any repairs and account for them as you formulate your bid.
One benefit of this process is a little more flexibility with earnest money. You can get your earnest money back as long as you cancel before the contract is signed. But be ready to act fast if your bid is accepted. Glink says that HUD is transitioning to a 30-day contract. If you have the winning bid, you’ll have to finalize your financing quickly. Have a folder with your tax documents, pay stubs and account information ready to present to your lender as soon as your bid is accepted.
Glink provides links to the HUD websites and to information on a couple of FHA financing options that might work for you. She also offers an explanation of the bidding process and more details on the best ways to go about making the HUD process work for you as you purchase your next Atlanta home. Visit the Equifax Personal Finance blog to get started.