Buying Your Home - Foreclosures
Does HUD require you to use a Realtor for a purchase ?
Yes. You may only purchase a U.S. Department of Housing and Urban Development property through a licensed real estate broker.
Seek out a competent RE/MAX Realtor with HUD property experience.
Are they the best deal for your money?
Not always: Within the industry, these properties are generally in distress which means the lender who previously held the mortgage note has acquired the property through the foreclosure process and many of these properties have been neglected and may have many deferred maintenance issues.
This type of property may not be conducive to FHA or VA home buyer financing due to poor conditions. The owner of such will not agree to complete any required repairs to the home, rendering the purchaser to only two options: a cash buyer or a conventional financing program.
Are foreclosures an option for you?
A foreclosure property is a home that has been repossessed by the lender because the owners failed to pay the mortgage. Thousands of homes end up in foreclosure every year.
It is wise to be cautious when considering a foreclosure. Many experts, in fact, advise inexperienced buyers to hire an expert to take them through the process. It is important to have the house thoroughly inspected and to be sure that any liens, undisclosed mortgages or court judgments are cleared or at least disclosed.
Basically: Buyer Beware !
Where do I learn about HUD foreclosures?
One good source is their Web page http://www.hud.gov.