FAQ – HUD Home

Some Frequently Asked Questions on buying a HUD Home

1. Who can buy a property on HUDHomestore.com?

HUD has indentified five buyer types that are eligible to purchase HUD-owned homes. Certain conditions must be met to determine the eligibility of a buyer to bid on a particular home. Only registered bidders can make offers on properties. Homebuyers must use a registered selling broker or selling agent to make an offer on their behalf.

Owner Occupant: Eligible owner occupants are individuals with a valid SSN who have not purchased a HUD property with the past two (2) years. They can bid on homes in the Exclusive or Extended periods. Owner occupants rank above nonprofits and government agencies in the bid-selection process for Exclusive and Extended listings.

Investor: Eligible investors are individuals with a valid Social Security Number (SSN) or Employer Identification Number (EIN). They can only bid on homes in the Extended phase and are ranked below other types of bidders in the bid-selection process.

Good Neighbor Next Door (GNND): Good Neighbor Next Door (GNND): Eligible GNND buyers can find details on the program on the following Web page – http://www.hud.gov/offices/hsg/sfh/reo/goodn/gnndabot.cfm. GNND buyers can bid on single-unit homes in a Revitalization Area during the Lottery phase. During the Lottery phase, GNND buyers (1) get a 50% discount off the HUD appraised value, and (2) are given preference over Government Agencies and Nonprofits in the selection of a bid-winner. After the Lottery phase, GNND buyers are not eligible for the 50% discount.

For example, if HUD lists a home at $100,000 and the home is in the Lottery phase, a GNND buyer can buy it for $50,000 provided they occupy the home as their personal residence for the required 36-month occupancy period. If they qualify for any FHA-insured mortgage program, their down payment is only $100 and they may finance closing costs.

Nonprofit: Eligible nonprofit organizations, can bid on homes in Lottery, Exclusive, and Extended phases provided they are in approved purchase areas. If the property is in the Lottery phase, the home must be uninsured. Nonprofits rank below Government Agencies in the bid-selection process for the Lottery phase, but above them for Exclusive and Extended listings. Nonprofits cannot bid for Dollar homes.

See http://www.hud.gov/offices/hsg/sfh/np/np_home.cfm for more information.

Government Agency: Approved government agencies can bid on homes in Lottery, Exclusive, and Extended phases provided they are in approved purchase areas. If the property is in the Lottery phase, the home must be uninsured. Government agencies can bid for Dollar homes.
See http://www.hud.gov/offices/hsg/sfh/reo/goodn/dhmabout.cfm for more information.

2. How do I search for a property?

To search for all the HUD properties in a state, click a state on the U.S. map (in the HUD Homes screen) or use the Search Properties area and select a state before clicking the Search button.

You can type in part of a street address, or part of any of the other text fields. You can also search by price range, number of bedrooms or bathrooms, buyer type, or property status. The system will select all properties that contain, in the corresponding fields, the letters or numbers that you typed in.

TIP: Less is more. The less you type in, the more homes will display as a result.

3. When I click a state on the map, I don’t get as many homes. Why?

On the home page, you can click a link for Good Neighbor Next Door, Nonprofits, or
$1 Homes – Government Sales. When you click the Good Neighbor Next Door link, you’ll display the Neighbor Next Door screen. If you then click one of the dark blue states, you’ll display only those homes that are available for Good Neighbor Next Door (there are usually just a few GNND homes in each state).

The map on the $1 Homes – Government Sales screen will do the same: only display those few homes available for a $1 government purchase. In contrast, when you click a state on the Nonprofits screen, you will see a great many homes since a HUD-approved nonprofit is eligible to purchase a HUD home in all price ranges and in most listing periods.

If you don’t use the map, but want to use Search Properties, you must select an appropriate Buyer Type before clicking the Search button. Otherwise all the homes that are available in the state will be displayed.

4. Why do I have to register and create a login?

You are required to register with HUDHomestore.com in order to save listings, save searches and receive email alerts.

5. What are the listing periods?

Properties can be in one of four listing periods, depending on the type of property, the Bid Open Date, and how long it has been on the market. These listing periods are:

Lottery: For an insured or uninsured single unit property in a revitalization area, plus all other uninsured properties. The initial listing period is seven (7) days. The next listing period is the Exclusive period.

Exclusive

(a)   For insured properties not in a revitalization area, the initial listing period is thirty (30) days. The next listing period is the Extended period.

(b)   For uninsured properties not in a revitalization area, the initial listing period is five (5) days. The next listing period is the Extended period.

Extended: This listing period is a total of one-hundred-and-eighty (180) days in the listing period. The next listing period is the Dollar listing period for homes that have an as-is appraisal value of $1 to $25,000. Those homes whose value is zero dollars or greater than $25,000 dollars continue on in an open-ended Extended listing period.

Dollar (Government purchase only): This listing period is ten (10) days, and is for homes that have an as-is appraisal value of $1 to $25,000. After the $1 listing period, the home enters an Extended listing period that has no ending date (except when the home is purchased or reanalyzed).

6. Where do I go if I have questions about a property?

Contact the Listing or Selling Agent, or the Asset Manager for the property. You can find contact information by clicking the Property Case number, then clicking the Agent Info tab. The HUD Homestore Help Desk cannot answer questions about individual properties and will refer you back to the Agent Information.

7. What are the HUD Special Programs?

Good Neighbor Next Door: Law enforcement officers, pre-kindergarten through 12th grade teachers, and firefighters/emergency medical technicians can contribute to community revitalization while becoming homeowners through HUD’s Good Neighbor Next Door Sales Program. HUD offers a substantial incentive in the form of a discount of 50% from the list price of the home during the Lottery phase. In return, the purchaser must commit to live in the property for 36 months as their sole residence.
See http://www.hud.gov/offices/hsg/sfh/reo/goodn/gnndabot.cfm for more information.

$1 Homes (Government purchase only) : HUD’s Dollar Homes initiative helps local governments to address specific community needs by allowing those government agencies to purchase homes for one dollar. These are homes that have been on the market for over six months and that have an as-is appraisal value of $1 to $25,000. The government agency can then fix up the home and offer low- to moderate-income families the opportunity to purchase qualified HUD-owned homes for a substantially reduced price.
For more information, click the following link: http://portal.hud.gov/hudportal/HUD?src=/program_offices/housing/sfh/reo/goodn/dhmabout

Nonprofit: The Federal Housing Administration (FHA) offers community and faith-based nonprofit organizations the opportunity to purchase HUD homes at discounts up to 30%. With this discount, local nonprofit organizations invest in their communities through property rehabilitation and resell to first-time homebuyers and low to moderate income families.
See http://www.hud.gov/offices/hsg/sfh/reo/goodn/dhmabout.cfm for more information.

8. How can I find out if I’m eligible for one of the special programs?

Contact your local HUD office. If you need contact information, call
1-800-CALL-FHA (800-225-5342) or send an email to answers@hud.gov

9. Who are the contacts for the HUD property for sale?

If you would like to see more contact information for a HUD-owned property, click the Agent Info tab on Property Details. At the top of the screen there is the HUD HOC contact information.

Property Search

1. How do I search for a property in my area?

You can search for all the HUD properties in a state by clicking the state on the map or selecting it from the list.

You can type in part of the street address, or part of any of the other text fields. The system will select all properties that contain in the corresponding fields the letters or numbers that you type in. You can also search by a price range, number of bedrooms or bathrooms, buyer type or property status.

2. Can I save searches or bookmark properties?

When you have selected your search parameters and clicked Search, the system will keep a record of that search and up to five additional searches. Click the Recent Searches button to view the parameters or rerun your searches . If you click a Property Case to view property details, that property and up to five additional properties will be saved by the system. Click the Recent Listings button to view a list of recently viewed properties; you can click the Property Case number link to review the property details.

To permanently save unlimited searches and listings and receive user defined email alerts, you are required to register with HUDHomestore.com and create a user name and password login.
Click the Save Search icon to save the parameters of our search.
You can click the Save button to the right of the property in the list of search results to save a property to review when you log in.

3. How can I see properties or searches that I’ve saved?

You can see properties that you’ve saved by logging in to HUDHomestore.com. You will see links to Saved Properties and Saved Searches.

4. How can I rerun searches that I’ve saved?

To rerun a search that you have saved, log in to the HUDHomestore.com, click Saved Searches, and click the link under Search Criteria.

5. How can I be notified that there are new listings I might be interested in?

HUDHomestore.com can send you email alerts if a property meeting your search criteria becomes available. First log in to HUDHomestore.com, and click your Saved Property list. You will see a column called Email Alerts and Property Notes. Click the Email Alerts link.

Buyers

1. How do I search for a property in my area?

You can search for all the HUD properties in a state by clicking the state on the map or selecting it from the list.

You can type in part of the street address, or part of any of the other text fields. The system will select all properties that contain in the corresponding fields the letters or numbers that you type in. You can also search by a price range, number of bedrooms or bathrooms, buyer type or property status.

2. Can I buy a home for investment purposes?

Yes. However, during the initial listing, owner-occupants get priority. If an owner-occupant does not bid on the home, then investors can bid on the home.

3. How can I find out if I’m eligible to buy a property?

For individual purchasers, you must have a valid Social Security number (SSN) or Employer Identification Number (EIN) to purchase a home. Owner-occupants are not eligible if they have purchased a HUD property in the past two (2) years.

4. Can I bid on homes myself?

No. HUD requires all bids be submitted through an authorized HUD broker. Click the Find Broker link on the top menu or in the Property Details screen to find a registered HUD broker in your area.

5. Can I buy a property with someone else?

Yes. You need to work with the selling broker to find out how a purchase by multiple buyers is handled.

6. How can I get more information about a property I want to buy?

Contact the local Listing Broker for the property or your Selling Broker.

7. Do I have to register to make an offer?

No. You do not have to register to make an offer through a Listing Broker. However, registering on the site allows you to save your recent searches and recent listings, as well as receive email alerts when new listings become available.

8. What if I forget my password or user name?

If you forget your username, you will have to reregister on the site. If you forget your password, you can get a temporary password after you answer the two security questions you set up when you first registered.

9. How do I update my personal (profile) information?

Once you’ve logged in, click the Public Functions link to the left of the Logout link. One the left side, click the My Profile link. In the Update User Profile screen, you can make changes to your password, security questions, and contact information. To save your changes, click Submit.

10. Do I need an agent to make an offer?

You cannot put in an offer on a HUD Home by yourself. You must use a Selling Broker who is licensed to sell HUD Homes to represent you, or you can go through the Listing Broker for the home.

11. My computer won’t display a PDF document.
What can I do?

Some documents (such as Sales Contracts and Addendums) are saved in Adobe’s PDF format. To get the free PDF reader, click the Adobe Reader link.

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2 Responses to FAQ – HUD Home

  1. billprice7 says:

    Those FAQ were great. Thanks

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