Is HUD right option for you?

What makes a HUD home a "HUD?" The previous owner defaulted on their FHA insured mortgage and now it has been given back from the bank to the federal government in order to get it sold. At the time they are available and on the market, there is no existing loan owned against the property. HUD, which stands for U.S. Department of Housing and Urban Development, differs from existing bank-owned properties because they are now in the hands of the federal government. There is not a bank making the decision as a seller. These properties have been cleaned out, had an appraisal completed, and are just waiting for a willing and ready buyer!

Our federal government distributes these properties in the western states to a regional HUD office which for our area is in Santa Ana, Calif. HUD also has hired an asset management company called BLB Resources that administers the offers on these properties. BLB Resources Inc. is a national real estate company that oversees the local listing brokers who put these properties into the local MLS systems, so all Realtors have a chance to sell these homes. The properties are also posted on HUD's own website www.Hudhomestore.com.

Who can buy a HUD home? Any and all persons can buy a HUD home. Some buyers read or see something that says HUD home think that their income must be limited to qualify for special financing or the homes are only for the very poor. This is not true; these homes are in all neighborhoods and can be purchased by very affluent buyers as well. You will want to find a Realtor of your choice to show you the home and to do the paperwork. Any purchasers who can pay cash or qualify for an FHA or conventional loan may submit offers.

There are specific time frames from when the property is first available to when investors might be able to submit offers and there is an initial 10-day period allowing a fair opportunity for owner-occupied buyers or nonprofits to purchase the home and to get their financing in order to submit their offer.

After that 10-day period offers are reviewed on a daily basis and the offer that meets HUD's acceptable net proceeds will be the winning recipient that can finalize their financing to purchase the home. Investors must wait 30 days in order to submit an offer. The goal is to give the person who will occupy the home the best opportunity to purchase the home. After an offer is accepted the closing time frame is about 45 days, there are always exceptions to every home purchase.

If you're interested in buying your first home, new home or your next investment property keep HUD homes in mind. Call your Realtor today and ask about HUD Homes!

For a safe trip home, call a Realtor. Call your Realtor or visit www.cdarealtors.com to search properties on the Multiple Listing Service or to find a Realtor member who will represent your best interests.

Anne Anderson is a real estate broker and a member of the Coeur d'Alene Association of Realtors. Anne and the Association invite your feedback and input for this column. You may contact them by writing to the Coeur d'Alene Association of Realtors, 409 W. Neider, Coeur d'Alene, ID 83815 or by calling (208) 667-0664 with your questions or commentary.