How does bidding on HUD homes work?

Question

I have a house next door to me that was just listed as a HUD home. I would like for my mother in law to try out for this home, but unsure how the process works. It first said that the bid deadline was 8-3-08 for owner occupants, so she obviously couldn't do anything about it since it was over with. Now, it's listed with a bid deadline date of "daily" for any bidders. Any insight on the subject would be helpful, thanks!

Answer 1

Depends on what type of HUD it is and what is hud about it- the loan, the house.....

You may not qualify.

If your bidding- get an real estate agent.... it's well worth the money because you'll need one anyways.  And it's a little to late because you need to be prequalified and ect....  before bidding unless your paying cash for the house.

We got a foreclosed home and our loan is HUD but it really means nothing- since it's a normally loan but HUD was the only company willing to give us a loan on a property that need work.

Auction homes are very tricky- we a doing one now and it's been a nightmare trying to get the title straighten out.  Lot's of problems that you have to be prepared to deal with..... like the $800 dollar water bill they didn't pay!  Make sure the title is cleared!

Basically the short run down of auctions is-

1. You need lots of cash on hand.

2. Make sure the title is clear.

3. Be ready to make lots of repairs- and if it's a HUD house- they tell you want to fix.  Hud demands certain repairs in 6 months or they take the house away from you- we are dealing with this for a Hud loan.  We paid 102, 000 for the house and HUD made us take 38,000 out in addition for house repairs.  And some of those repairs are unnessary but HUD doesn't think so- like ever freaken things needs a railing.  So you have to go by hud rules.

4. You can not get a conventional loan on most foreclosed or hud homes.  So you either have to have cash on hand to pay in full or get a HUD loan which as you can see above is not fun.  We have to do a lot of repairs we would rather not do and again- everything has to be done in 6 months by a contractor.

It is a great way to get a house for cheaper... but it's also a LOT of hard work and labor.