Question:

Are HUD properties for sale real cheap?

Answer:

HUD properties for sale are said to target low and moderate income owner occupant purchasers but are not always cheap. They may need certain repair as all resale properties do, and this can lower the price, and in general are very affordable. Teachers, firefighters, and police officers can get a discount as big as 50% when buying HUD properties for sale.

Why buy a HUD property for sale?

Investors want to buy a property for a quick fix and resell at much higher price. Regular owner occupant homebuyers can get a bigger property below market value and have precedence over investors.

In general, HUD properties for sale are sold at market value unless repairs are required, which is a common occurrence.

How to buy HUD properties for sale?

The homebuyer's bid is submitted through a HUD-approved real estate agent. Bids can be submitted any time - during weekdays, weekends and holidays. The highest bid is generally selected. If no acceptable bid was submitted, another bidding round is scheduled. If no owner-occupant purchaser submitted an acceptable bid, HUD REOs are sold to investors.

Homebuyers may request on their offer that the real estate agent commission be paid by HUD.

If the bid for the HUD property for sale is accepted, the homebuyer is notified within 2 days. Financing for the HUD REO property has to be arranged within 60 days, or earnest money is lost.

HUD employees and their relatives are also eligible to purchase HUD properties for sale.

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