Recently several people have asked me what a “HUD Home” is and how it becomes one, so I thought I’d take a few minutes to explain. A “HUD Home” is defined by The Department Of Housing And Urban Development (HUD) as “a 1 to 4 unit residential property acquired by HUD as a result of a foreclosure action on an FHA-insured mortgage. HUD becomes the property owner and offers it for sale to recover the loss on the foreclosure claim.” Basically, this means someone bought a home using an FHA-insured loan, didn’t pay their mortgage, and HUD foreclosed on the property. The property is now owned by HUD and they want to sell it, so they list it as a HUD home.
Who can buy a HUD home?
HUD homes are offered to owner-occupants (person who buys the house must live in the house) and after a period of time, if they are not sold, they are available to investors.
How do I find HUD homes?
HUD develops relationships with certain websites that maintain lists of HUD homes. These sites can be searched by the public and an offer may be submitted by a real estate broker registered with HUD. TX HUD homes are handled by the Southwest Alliance of Asset Managers (they handle Texas and New Mexico). You can also find these homes listed on our local MLS.
Can anyone make an offer on a HUD home?
In Texas all offers must be made through a Texas Realtor/real estate agent registered with The Department of Housing And Urban Development. A Realtor® needs special keys to gain access to the homes for showings. Donna Kruse is a Texas Realtor, Accredited Buyers Representative and registered with The Department of Housing and Urban Development.
search HUD homes at www.hudhomestore.com then contact Donna to place your offer!