UD homes for sale are FHA 2. Loan pre-approval. You will
insured loans that have need a pre-qualification letter
been foreclosed and HUD has from a lender or proof of cash
taken possession of the HUD funds in the amount greater than
houses. the property that you are buying.
HUD will not do a HUD home loan
HUD assigns the HUD house to a to purchase a HUD home for sale.
Management and Marketing It is your responsibility to make
Contractor. The M&M contractor your own financing arrangements.
has cleaned it up the HUD house
and had it appraised by a FHA 3. HUD houses for sale are sold
appraiser. in “AS-IS” condition. All HUD
home listings are sold in “As-Is”
The rules for buying HUD homes condition and HUD will not do any
for sale are different for home repairs. They do provide a
buyers (HUD calls them Property Condition Report on some
Owner-Occupants) and investors. HUD home listings but no all. The
This article is written for home Property Condition Report is
buyers, not investors, and I will similar to a home inspection. The
discus the things they should problem with buying a HUD home
know before making a bid on a HUD listing is you cannot do a full
house. inspection before you make a bid.
You have to have a signed
1. Who can buy a HUD home for accepted contract from HUD before
sale? Almost any one can buy HUD you can have the utilities turn
homes for sale along as you can on. You can have an inspection
get a mortgage or have cash. done after you have an accepted
There are no restrictions on who contract.
can buy HUD houses.
4. Earnest money. The earnest
money requirements are $1,000 if estate agent. You need to locate
the list price of the HUD home an experienced real estate agent
listing is over $50,000 and $500 in buying HUD houses. An
if the list price is under inexperienced agent will cost you
$50,000. It has to be in the form thousands of dollars in mistakes.
of a cashier check, official bank
check, or money order. The return Purchasing HUD Homes for sale is
of the earnest money is not a lot different than buying a
automatic if you decide you don’t house from a seller-owner. Even
want the HUD home listing. before you make a bid on a HUD
house you have to do the
5. Real estate agent. To make necessary research and learn the
bids on HUD homes for sale you opportunities and pitfalls of
have to use a real estate agent. buying a HUD home for sale.
The bidding process is done on
the internet by an approved real
About the Author:
AL Hardymon is an experienced real estate broker in buying and selling HUD homes for both his clients and himself. You can do a free search for HUD homes in your state at his website: http://www.the-hud-home-expert.com which is an informational center for buying and selling HUD homes for sale.
Read more articles by:
Al Hardymon
Article Source: www.iSnare.com 
