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What is a HUD Home? I am looking at foreclosures and low cost homes..?

What is a HUD Home? When it comes to foreclosed homes and these wonderful prices I am searching for my first house to purchase. I just need to know the details. What is a HUD Home? I know to check for back taxes and any serious problems the home may have. Any advice? Thanks!

Public Comments

1. HUD homes will have clean titles. They buy homes in distressed (high crime, not foreclosure) neighborhoods , fix them up and sell them. Check hud.gov to see if there are any near you. You have to occupy them, HUD does not sell to investors, so I have never bought one but I have helped people with the paper work before.
2. A HUD home is a property that was taken back by the bank/lender because the purchaser failed to make their monthly mortgage payment. This property was guaranteed by FHA normally. Since the property was guaranteed by the FHA, they pay the bank off that secured the mortgage loan for the person that purchased the house and failed to make the monthly mortgage payments. Since HUD paid the lending institution off the property is now the possession of HUD. HUD is Housing for Urban Development and was set up to assist individuals that could not afford to pay a lot or money down on a home. Some are credit risk. Since this program guaranteed the bank/lender that if the person purchasing the house failed to make the monthly payment the government would insure the bank/lender would not lose any money by buying the property back in the event a foreclosure would happen. You can select and purchase a HUD home through your local real estate agent that is HUD qualified. Check your local telephone book under real estate for such a real estate agent. HUD homes are sold to those that want to live in them as well as investors, though investors take a back seat to those that are purchased as primary residences. You need not check for back taxes, once you have decided to purchase a HUD home or any home as far as that is concerned the closing agent you use will open a title report for you. This title report will tell if there are any back taxes or other liens on the property. If there are back taxes the current owner will be required to bring the taxes current. If there are other liens on the property they have to be paid off before you can take possession of the property by the current owner. Before you purchase a property the current owner through a title company must present you with a clean clear title. The only lien on the property will be the lien you make in purchasing the property. Buying property is done in phases. The first phase is getting pre-approved to purchase a property. Get that done first. Then the other things will start to fall into place as you go through each step. There will be mortgage loan officers, real estate salesperson home inspectors, appraisers, as well as others in the process. I hope this has been of some use to you, good luck. "FIGHT ON"