HUD Implements New Bidding Guidelines You Need To Know

HUD homes are owned by the Department of Housing and Urban Development (HUD). The us government becomes who owns these properties, whenever a FHA mortgage goes in default and one is foreclosed on.

Many people may think of HUD homes as trashed houses in the inner city that need a lot of work and therefore are not suited to owner occupants. Nothing can be farther from the facts. Between 40% and 50% of HUD homes have been in the suburban areas and were built under 10 years ago. Most of them have been in good shape and a property owner can relocate without major repairs.

For frugal buyers HUD properties offer an excellent opportunity to get into quite a home way below market value. Additionally, buyers can make the most of favorable financing terms underwritten by the federal government.

Last August HUD selected new asset managers. These businesses market then sell HUD properties for that government. In October the new firms took over in the previous managers and implemented 3 major changes set forth by HUD.

1.HUD created a new website www.HUDHomeStore.com for listing HUD homes nationwide. There searching HUD houses by state, county, zipcode, list price and other criteria.

2.Timelines for submitting HUD offers have changed in support of owner occupants. All houses listed as insurable or insurable having a repair escrow are now exclusively open to owner occupants for 30 days. Only uninsured homes will be open to investors following a 5 day exclusive period.

3.The earnest money deposit required for homes above $100K is now 1% from the purchase price. For offers below $100K you deposit $1,000 and for homes under $50K you have to deposit $500 payable to HUD.

Due to this transition there were extremely little new HUD listings in October 2010. However, it's changed. Many new HUD homes hit the market last week, and HUD's listing brokers are marketing these houses aggressively.

The entire process of bidding on HUD homes is confusing to most buyers, even real estate agents. HUD established the new bidding guidelines in October 2010. These new rules are summarized within the HUD Home Buyer's Guide for 2010.

Both owner occupant buyers as well as property investors can benefit from this Buyer's Guide. It has all the information they have to successfully bid on HUD homes. Even realtors may not be fully aware from the new guidelines. The home Buyer's Guide may be the perfect reference that helps them grow their business in these hard economic times.

To obtain a copy of the HUD Home Buyer's guide free of charge at Columbus Ohio HUD Homes