Purchasing a HUD Owned Property in Central Ohio
See a property you love but it has a HUD sign in the front yard? Only a handful of Realtors are Authorized HUD Agents and can help you purchase a HUD home. What is a HUD home? It is a home where the previous owners held a Government Loan on the property (Such as an FHA loan) and have defaulted on that loan resulting in the loss of the property. Typically the home will be listed at the Auditor's value of the home. However, with your Authorized HUD Agent, you will be able to bid on the home at whatever offer price you desire. Of course, the lower the bid the higher the chances of it not being accepted. If it is a popular area, you may also have others interested in the home who may bid higher and thus you would not win the bid. This is where your agents knowledge of the bidding process, neighborhood and formulas comes in play.
HUD homes are typically "As Is" meaning unless there is a major problem with structure (and HUD agrees), you will not be able to back out of the contract once in contract. This can be tricky for the nervous Buyers because the utilities cannot be activated for a Home Inspection until the signed paperwork is received by HUD or it's representative company (in Central Ohio it is the Chapman Law Firm). Once the contract and addendums are received back to your agent (signed) you can call the utility companies and have them turned on .... but only for 48 hours. Of course the alternative is to have an inspection before placing a bid. The risk to the Buyer here is that they will most likely be out the fee for the inspection if the bid is not accepted. Not to mention the utilities will not be turned on to inspect the furnace and such prior to the bid being accepted.
HUD homes like Bank Owned Properties can be a great way to purchase a home for thousands less than it would have been if it was a "regular" home for sale. It is important that you have an experienced agent authorized to represent you in the purchase of a HUD home. You do not use the typical Sales Contract you would on non-HUD offers and you do not negotiate with counter-offers. You use a 2 page HUD contract followed by addendums and forms. Once the electronic bid is accepted, you must overnight all the signed paperwork to be received within 48 hours. There are a lot of steps for your agent to do and they all must be done correctly.
Once in contract, you will have 45 days to close. In Central Ohio, you can pick your closing location by writing it in on the contract. You can use either Conventional or FHA financing to purchase a HUD but the proof of financing must be included in the overnighted package.
These are just some of a HUD home. If you would like more information or would like me to help you in locating and purchasing a HUD home, please don't hesitate to ask. I am an Authorized HUD Agent in Central Ohio and would love to help you!
Please visit us at:
www.MindyandSteveHiggins.com for more information or contact myself at: 614-794-2222
Thanks for your interest and I hope to hear from you soon!
Mindy Higgins, Realty Solutions, llc
90 E College Ave
Westerville, OH 43081
"Realtors Thinking Outside The Box!"