How to buy a HUD home
How to buy a HUD homeHello welcome to Todd Miller TV. I want to talk today about how to buy a HUD home. Now a HUD home is similar to an REO, similar to a bank owned home. Specifically what it is is it was an FHA insured alone. It was foreclosed. Some entity forecloses and then HUD ends up being the recipient of the property. HUD didn’t actually foreclose on it they just own it now and they are going to sell it.So you are probably saying, “Well how is that any different from a bank?” Well it is different so what a bank does is a bank hires a real estate agent, mark the property and negotiate everything through a real estate agent and it is just like our traditional listing. Well HUD home is a little bit differently. HUD home is more of a sort of public you know giving sort of everyone a shot and this is how the process works.So the first thing you do is you go find your real estate agent because you have to get access to the property, you can’t just walk in. They are not like open houses. You are either going to have the listing agent to be able to see it or you are going to have to go find your own agent and any real estate agent will be able to get you into a HUD home and write it off provided they are registered with HUD.For example, I’m registered with HUD that means my agents here can all do that, take people to HUD homes. So once you take and look at the property then when you want to make an offer you don’t actually go and submit like a writing an offer and writing on a piece of paper. What you do is you go to the website and call the HUD home store.com. You find your property, you still in your information.You feel in how much you are going to pay and everything, submit it. They collect the first you know few of them and then at some point that offer period expire and then they look at all the offers. Whichever one nets them the most so an accept and then they send a paperwork you have a couple of days to get it filled out and sent back with you earnest money check.If you need to cancel in that period well you didn’t risk your earnest money because you haven’t given anybody earnest money so it is kind of a sweet deal there. Once that initial offer period is done, it is a free for all whenever you submit it, it gets in and if you know if you like it, it gets accepted so a pretty slick process. You are not having to wait like you do for some banks for you know weeks maybe to get an offer back usually get a response right away.They do have programs for firefighters, school teachers EMTs, Police officers like that discounts, things liked that. The most important thing when you are any time you are buying a house or anytime especially when you are buying a HUD home is to have your stuff together. You don’t have your lender, ready to go or have your cash or proof of funds be committed because if you find the house you like, you are not going to have a lot of time when you get your offer in and get it accepted.If you want to find out more about HUD homes you can you know search the website and have a bunch more stuff on there and I will be doing more videos on HUD. That is my tip for today and thanks for tuning in.