Iowa Ave., Pleasantville, NJ 08232

2010-10-11T10:27:00.000-07:00

How To Purchase A HUD Home

2009-11-16T01:45:00.000-08:00

In today's market many people are purchasing HUD homes. First let me explain what an HUD home is. HUD is a government agengy and it stands for the U.S. Department of Housing & Urban Development. Therefore when you purchase a HUD home you are purchasing this home from the government. Many ask how does a home become an HUD home in the first place. Well at one time the home was owned by a buyer who originally purchase the home with an FHA mortgage. FHA is an agency within the U.S. Department of Housing & Urban Development (HUD) that insure loans. Well when a buyer foreclosures with a FHA insured-backed mortgage the Lender file a claim with HUD to recoup the remaining balance of the loan and the deed is then turned over to HUD. At this time HUD must have the property prepared for resale often listing the property 20-30% below market value.

One of the greatest advantages of purchasing an HUD home is that a property condition report and appraisal is already completed before the home is put on the market. Therefore, you are aware of what you are buying and you can get a chance to do a physical inspect of the property before you bid on a HUD home. Remember, not all real estate offices are authorized to sell or help you bid on HUD properties. Be sure to contact me or one our experienced HUD agents when you want to buy an HUD property in New Jersey by calling us at 1-877-HUD-BIDS or by visiting our website at www.GlobalEliteRealty.com.