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Step 1:
Understand HUD Homes.
By
exploring and reading through this site you will gather a lot
of information on HUD Homes, and better understand the
requirements to buy, and what you might expect during the
transaction.
Step 2:
Getting Ready To Buy A HUD Home.
There
are 2 requirements that HUD requires of every bidder,
owner-occupant or investor.
1.
Get a Letter of Pre-Qualification.
Every bidder must provide a letter from a lending institution,
indicating they are able to complete the purchase of the
specific HUD Home they are bidding on. The letter must
state a dollar amount equal to, or greater than the amount
they are bidding. The only exception to this rule is for
bidders who intend to pay all cash. In this case, the
bidder must submit a statement, from a bank or other
institution, showing "proof of available funds".
GET
A PRE-QUALIFICATION LETTER NOW
2.
Deposit Requirements. HUD requires
a deposit be placed in our escrow account, for every
successful bid on a HUD Home. The deposit must be in our
possession prior to submitting the bid. The deposit is
not related to your the down-payment required for your loan.
It is possible that your down payment can be less than the
deposit. Your deposit is placed in our State Approved
Escrow account and will be refunded back to you upon closing
the purchase contract or with HUD approval. If you are
unable to provide the following deposit amounts, you can not
bid on a HUD Home.
1.
Homes under
$50,000...............................$500.00
Deposit Required
2.
Homes $50,000 and up
............................$1,000.00 Deposit Required
Step 3:
Search For A HUD Home.
Now that you have been
pre-qualified and have your deposit, you can search for a HUD
Home. Use our
site to search for your home based on any number of
requirements. New
HUD Homes are listed every Friday morning.
As homes are sold they are removed from the web site
within 24 hours after a successful bid.
Once you have identified a home you are interested in,
submit the “contact us” form, so we can set up an
appointment and show you the home(s) you have an interest in.
We will contact you within 24 hours of receiving your
request.
SEARCH NOW
Step 4:
Bidding On A HUD Home.
OK, now you have found
the home you want to buy.
We will meet with you, prepare all the documents,
collect your deposit (certified check preferred), and submit a
bid to HUD. All
bids must be submitted through us.
No individual is allowed to submit a bid directly to
HUD. The bid is
submitted electronically. “Daily” bids are accepted by HUD
until midnight each day.
You will know if your bid was successful by 4:00PM the
following day. Any
bids received on weekends or holidays will be opened the first
business day following.
The exception to this is for new HUD listings.
New homes are listed every Friday.
For your bid to be accepted in the first round of
bidding, it must be submitted by midnight on Tuesday,
following the Friday it was listed.
If no bids are accepted for this first round of
bidding, the bids are then open daily.
The first 10 days new homes are only available to
owner-occupant bidders.
If
your bid is not accepted you may resubmit every day, until the
home is sold.
MORE BID INFO
Step 5:
Your Bid Is Accepted.
Congratulations, you are
well on your way to owning a HUD Home.
We are required to submit your contract and supporting
documents to HUD within 24 hours.
All HUD Homes must be closed within 60 days of
acceptance. You
will need to make formal application for a loan as soon as
possible. We will
arrange home inspections, utility inspections, appraisals, and
insurance inspections, as requested.
Once your loan is approved the mortgage company submits
a closing package to an approved title company.
Step 6:
Closing Your HUD Home.
We
schedule a closing date and at a HUD approved title company.
Here you sign all loan documents.
Once this is completed you get your deposit back and
get the keys for your home.
It is recommended you change locks on your new home to
eliminate the chance other people have access.
Congratulations you now own a HUD Home.
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