Buying HUD Owned Homes

HOW TO FIND HUD OWNED HOMES
You do not have to pay for lists to find HUD Owned homes.  No matter what people are telling you on other websites.  In the greater Kansas City area HUD owned homes have a free listing service at HUD Homestore.  On the HUD Homestore web site you can search for HUD owned homes and bank owned homes at your leisure.

Read Our HUD Owned Homes Blog Category

HOW TO BUY A HUD OWNED HOME
HUD requires that you utilize the services of a professional real estate agent when purchasing a HUD owned home.   The purchase steps are a little different than traditional house buying.  It’s all done electronically and the great thing is you usually have an answer by the next day after a deadline.

WHO CAN BID ON A HUD HOME?
Anyone can bid.  But there are some guidelines as to those that receive priority. The following is from the “Successfully Selling HUD Homes” Guidebook provided by First Preston;

Days 1 – 10 of the listing period – Owner/Occupant bids are given priority over all others. All bids are evaluated and responded to on the 11th day (if it’s a normal business day) and treated as if they were received simultaneously.
Days 11 – 30 of the listing period – All bidders may bid and there are daily bid openings.  This is when real estate investors can jump into the bidding process.

HOW CAN I AFFORD TO BUY A HUD HOME AND MAKE ALL THE NECESSARY REPAIRS AND UPDATES?
That’s a very long answer.  For real estate investors you will need either cash, private money or maybe a combination of a conventional loan (if the home for sale is insurable), cash and/or private money. Give us a call so we can guide you.

If you are a prospective home owner the financing question gets a little easier.  If the home is insurable you can go with a conventional loan, an FHA loan (often a FHA(b) loan) or you could pay cash.  If the house isn’t insurable because of it’s present condition there is a loan called the FHA 203(k) loan and it’s a great vehicle to allow you to purchase a home with little down, make the repairs and updates and live happily ever after.  Be sure to visit our FHA 203(k) page for more details and definitely, give Tom Brassfield a call over at Security Savings Bank.  His number is 913.709.9779.

WHAT WILL I NEED TO MAKE A SUCCESSFUL BID ON A HUD HOME?
You will need the assistance of a professional real estate agent.  We can help.  You will need a certified check or money order as an earnest money deposit of $500.  (This can vary up or down.  HUD does run $100 “specials” for owner occupants from time to time.)  You will need a pre-approval letter from a reputable mortgage banker or broker or, if paying cash, you will need proof of funds.  And you will need about an hour’s worth of time to go over the offer and submit the bid to First Preston.

DO I NOW KNOW EVERYTHING I WILL NEED TO KNOW?
No.  That’s why we are here to help.  Call us today so we can help you through the process and buy your next home.