A HUD home is nothing more than a house that was purchased with an FHA loan that has since fallen into foreclosure. (I’m not sure why these homes aren’t called “FHA foreclosures,” which would be more intuitive for home buyers and investors, but the Department of Housing and Urban Development [HUD] is the federal office [...]
Buying a foreclosed property might include taking ownership of unpaid back taxes. If you buy a foreclosed house with liens or back taxes, you could be held responsible for paying the liens and back taxes upon purchase of the home or property. Buying a short sale should not make a buyer subject to liens or back taxes. Know the difference between a short sale, foreclosed property and an REO property and make sure you research the property to see if the home has any unpaid real estate taxes or liens.
How does the HUD Bidding Process work? For all HUD homes, there is an automated bidding process to purchase a HUD home. Buyers who want to purchase a HUD home for a primary residence usually have a lead over real estate investors. A HUD certified real estate agent can help you purchase a HUD home through the HUD bidding process.
Buying a foreclosure or short sale is basically the same as buying any property on the housing market. You may be able to get a good deal on a foreclosure or short sale if the market is full, but the market value and property value in your area will drive the pricing and financing the loan. Watch this Expert Real Estate Tips video for more information about short sales and buying a foreclosure.
