The Federal Housing Administration (FHA) is a part of the United States Department Housing and Urban Development (HUD). FHA provides insurance to lenders on FHA approved loans. Should an individual or investor default on a FHA-insured loan, FHA pays off the lender and assumes the foreclosed loan on their books as a HUD home.
With the state of our economy, an increasing number of homeowners are defaulting on FHA-insured loans making available a great number of HUD homes on the market. Some of the great incentives to purchasing a HUD home include the following: the starting bid is typically below appraisal, the qualifying $100 down payment, the substantial sales allowances that can be used to pay closing costs, repairs or pay down the mortgage and the fact that HUD pays my real estate commission.
The $100 down payment requires that an individual qualify for FHA-insured financing, the new owner occupies the home and pays full list price.
HUD homes are sold “As-Is” and interested individuals are encouraged to get the home professionally inspected.
Many individuals and investors are quickly and aggressively bidding on HUD homes in Colorado. I am seeing many HUD homes in the Denver area being purchased at a price much greater than the minimum bid set by HUD. Of course, HUD will accept the highest “net bid” on the table.
If you are a firefighter/emergency medical technician, pre-kindergarten through 12th grade teacher or law enforcement officer, you may be able to qualify for the HUD Good Neighbor Next Door Program which allows you to purchase certain HUD homes in revitalization areas for 50 percent of list price! If you buy a HUD home as part of the Good Neighbor Next Door Program, you must live in the home for 36 months.
It is required by HUD that those wanting to purchase a HUD home do so through a HUD registered and approved real estate agent, like myself. Of course, HUD has a defined and exact process that an agent must follow. It is critical that you work with an agent that is thorough and familiar with the process. If the paperwork submitted by a real estate agent isn’t in accordance to HUD rules, an accepted offer could be lost. By having me as the agent to represent your HUD purchase, you gain the advantage of my thorough knowledge of the HUD process and extensive accounting experience with an eye for detail.
I would love to help you find, bid and purchase a HUD home. You may start your Northern Colorado HUD home search by calling me at 970-412-7591 or click on this link to search and then call me for more information and to show you the home http://hud2.towerauction.net/e7/gen_list/CO.htm. By the way, HUD lists new properties on their website every Friday.
Margaret C. Blythe
“Yes, I Can!”
Broker Associate
Keller Williams Realty
Serving Northern Colorado
Phone: 970-412-7591
Email: mail@margaretblythe.com
Website: http://www.margaretblythe.com/
Blog: http://www.margaretblythe.blogspot.com/
Blog: http://www.margaretblythe.wordpress.com/
