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Buying HUD Homes

Friday, March 8, 2013   /   by Martin Millner

Buying HUD Homes


HUD (Housing and Urban Development) is the federal agency that takes responsibility for FHA backed loans that go wrong...  A HUD home is a 1-4 unit residential property acquired by HUD when a loan backed by FHA, goes into foreclosure.


Here are some specifics about the process of buying a HUD home:



  • HUD becomes the property owner and offers the home for sale to recover the loss on the foreclosure claim.

  • HUD homes are appraised and then priced at fair market value for their area.  The homes are sold “as is”, but the price has generally been adjusted down to reflect repairs that the homeowner will have to make.

  • HUD homes are sold using a bidding process.  There is an offer period, during which, sealed bids are accepted from your agent. Once the offer period closes, all bids are opened, and HUD will generally accept the highest bid, or the bid that brings them the highest net.

  • If your bid is accepted, your agent will be notified within a couple of days.  You will be given a settlement date - usually 30-60 days from the date of the accepted contract.

  • If no one makes an offer for a HUD home within a certain amount of time, HUD will lower the price.  The price will continue to drop until an offer is made and accepted.


So, what is the best way to safely purchase a HUD home?



  • Find the right real estate agent.  Only agents who are registered with HUD may represent home buyers and investors in the purchase of a HUD home.  The best way to track down the right agent is to go through the website that lists HUD homes in your area, and determine which agent has the most winning bids.

  • Be sure to inspect the property before making an offer.  The listing agent has access to the property and can show it to you.

  • Make an offer based on the process above

  • Get your financing in order so you can close in a timely fashion.  It could be as soon as 30 days from acceptance date.  It would really be in your best interest to secure financing before you make an offer.

Keller Williams Real Estate - Newtown
Martin Millner
12 Terry Drive, Suite 204
Newtown, PA 18940
215-519-1399
215-519-1399

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“The data relating to real estate for sale on this website appears in part through the TREND Internet Data Exchange program, a voluntary cooperative exchange of property listing data between licensed real estate brokerage firms in which Platinum Realty Team participates, and is provided by TREND through a licensing agreement.”

“The information provided by this website is for the personal, non-commercial use of consumers and may not be used for any purpose other than to identify prospective properties consumers may be interested in purchasing.”

Data last updated:May 26, 2024 “Some properties which appear for sale on this website may no longer be available because they are under contract, have sold or are no longer being offered for sale.” “Some real estate firms do not participate in IDX and their listings do not appear on this website. Some properties listed with participating firms do not appear on this website at the request of the seller.” Data Last Updated: May 26, 2024

The data relating to real estate for sale on this website appears in part through the BRIGHT Internet Data Exchange program, a voluntary cooperative exchange of property listing data between licensed real estate brokerage firms in which Martin Millner - Coldwell Banker Hearthside Realtors participates, and is provided by BRIGHT through a licensing agreement. The information provided by this website is for the personal, non-commercial use of consumers and may not be used for any purpose other than to identify prospective properties consumers may be interested in purchasing. Some properties which appear for sale on this website may no longer be available because they are under contract, have Closed or are no longer being offered for sale. © 2024 BRIGHT, All Rights Reserved Information Deemed Reliable But Not Guaranteed. Data last updated: May 26, 2024 1 PM.
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