With all the buzz of home affordability going up, you have decided to pursue buying a HUD home… now what? Purchasing a HUD home is slightly different than the conventional home buying process. Follow these steps to ensure a smooth transaction.
Step 1: Find a registered HUD broker. Only a registered HUD broker may show you a HUD home for sale. These brokers have access to the properties, disclosures, home inspection reports, and are well versed in the bidding process.
Step 2: Now you’ve found the HUD home you want to buy, next is the bidding process. Meet with your registered HUD broker to submit your bid via the internet. The bids are opened at the same time each day with a preference going to the highest net HUD receives on a property. If a house is listed to sell, it’s most likely in your best interest to bid list price or higher. Consult with your registered HUD broker for advice.
Step 3: Congrats! You’re offer has been accepted, now you have 48 hours to submit the hard copy paper work. Your designated HUD broker will require from you the following: a copy of your driver’s license and social security card. A certified bank check for your deposit in the amount of $1000 (or $500 if purchasing a house less than $50,000). You will also be required to sign and initial the purchase and sales contract plus additional addendums. It is imperative you submit the package to HUD in it’s entirety with NO errors, otherwise they can and will reject the offer and put it back on the market.
Step 4: The waiting game… About 5 days later you will receive a package from HUD. This will be your “closing packet.” Here you will have the information of who to call to ask permission to setup inspections and begin the closing process. If you are doing a home inspection you assume all risk and liability to any damage caused to the property. You must also dewinterize and rewinterize the property after completing the inspection. Utilities must also be placed in the buyer’s name. Remember when buying a HUD home, it is sold “as-is.” Therefore HUD will not make any provisions to complete any repairs.
Step 5: The attorney orders the title search, you obtain your mortgage/bring cash and the house is yours!
It is easy to buy a HUD home for sale, but you want to make sure you’re protected and work with an agent who is familiar with the process. Julie Tetreault of Wallace Tustin Tetreault is a designated HUD broker and is familiar with the process. Visit her website, www.MyRealta.com for more information or contact her with your HUD home buying questions, julieismyrealta@gmail.com
No comments:
Post a Comment