HUD Homes
HUD Q&A
At Market Point Realty Services our focus is to assist you in identifying the best deals in the Austin foreclosure market. Some of those deals are available from the Department of Housing and Urban Development. A “HUD” home is a 1 to 4 unit residential property acquired by HUD as a result of a foreclosure action on an FHA-insured mortgage. HUD becomes the property owner and offers it for sale to recover the loss on the foreclosure claim. From helping you find a HUD home to meets your needs all the way through the closing of your new property, Market Point Reality Services will help you every step of the way. If you are unable to find the answer to your HUD related question here, contact us today.
Anyone can buy a government-home
HUD homes can be purchased by anyone. While many of the HUD-owned homes in our inventory are affordable for low to moderate income individuals and families, there is no income restriction on purchasing these homes. However, a buyer must submit a pre-qualification letter from a lending institution or have proof that they can pay cash for the home in order for a bid to be eligible. Homes may be purchased by owner-occupants (those buyers who plan to live in the home for a minimum of one year) who have a priority bid period of 10 days. Investors may also purchase HUD-owned homes, but their bids are only accepted if an owner occupant bid does not meet the reserved price in the first 10 days a property is on the market. Reserved prices are not published for any HUD-owned property.
HUD homes are sold at market value
HUD homes are initially listed at the "as is" appraised market value. The buyer may offer any price, but HUD will only agree to offers that provide an acceptable return. The amount of the acceptable return is not available. Price reductions may take place if the home does not sell so view property listings weekly to monitor inventory and listing prices.
HUD homes are sold "As Is"
It is important to understand that HUD homes are sold in "as is" condition. This means that the condition of the home when you see it is what you will be buying. HUD or Market Point Realty Services makes no warranties, does not guarantee the condition of any home, and does not verify that it complies with any local code or zoning requirements. You must make any necessary repairs after the purchase. HUD may make, or give you an allowance for, major system or safety repairs only if you are purchasing with an FHA-insured loan. It is very important that you get a Home Inspection by a licensed professional prior to closing on the sale to fully understand the condition of the property.
Deadlines must be met
When purchasing a HUD home, you should submit your best offer during the bidding period. In order to be fair to all purchasers, HUD has imposed timetables that must be met or your bid or contract will be cancelled and the home returned to the market. Once your bid is acknowledged as the highest net to HUD, your agent must send in a correct contract within 48 hours or the bid will be cancelled. Generally, closing must take place within 60 days, "cash" deals typically close in 30 days.
