by Brian Burke
on Monday, November 30th, -0001 at 12:00am.
Buying a Denver HUD home is a great way to purchase an affordable home or invest in real estate in the Denver metro area. But before you jump right into your search, there are some things you should know about the rules and procedures involved in buying a HUD-owned home.
Denver HUD Home Listings
All Denver HUD homes are listed on the Denver Metrolist Multiple Listing Service (MLS) at their “as-is fair market value," which is determined by a Federal Housing Administration (FHA) appraiser. The price of a HUD home may be reduced or made available through special sales programs if it doesnt receive any acceptable offers after a certain period of time. Prospective buyers can only view HUD-owned homes in the company of a HUD-registered broker or agent.
Submitting Your Bid
Anyone who can qualify for a mortgage equal to or greater than the fair market value, or pay with cash can bid on a Denver HUD home through a HUD-registered broker or real estate agent. HUD-registered agents will submit your bid to HUD, and the bid that has the highest net to HUD receives a provisional bid acceptance subject to receipt of all required documents.
For a bid to be accepted, HUD requires that prospective buyers provide either a pre-qualification letter from a lender or proof of adequate cash funds (greater than or equal to the price of the home).
HUD also requires "earnest money" relative to the value of the home–$500 for homes under $50,000 and $1,000 for homes over $50,000. The earnest money is due following HUD's provisional acceptance of the bid. HUD does not accept personal checks, so the earnest money must be provided in the form of certified funds.
Now that you know what's involved in finding and bidding on a Denver HUD home, take a look at the great properties that are available. Feel free to contact us with any questions you may have, or to schedule an appointment to see a Denver HUD home in the Denver area.
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Brian Burke | Broker | ePRO | Expert | 303.955.4220 Office | 303.710.2609 Direct | Brian@kennarealestate.com