Information about HUD Owned Homes/ HUD Homes in Denver Area
by Brian Burke
on Friday, February 17th, 2012 at 2:38pm.
HUD Owned Homes in Denver, Colorado
What are HUD Homes?
HUD Homes are properties that are owned by the United States Department of Housing and Urban Development (HUD). They are FHA loans that Foreclosed.
Who can Purchase a HUD Home? Any individual or company who can qualify for a mortgage or pay cash can purchase a HUD home. Buyers have to also have a pre-qualification letter from a lender, on lenders letterhead, or proof of adequate cash funds in the amount of or more than the price of the home they are considering purchasing. To buy a HUD home, buyers must use a HUD register broker or real estate agent, who can place a bid on a HUD home.WE ARE HUD registered Brokers here at Kenna Real Estate
How are HUD Homes/ HUD Foreclosures Sold? All HUD Homes are listed the Denver Metrolist MLS at their "AS-IS" fair market value. Buyers (with the exception of special program purchasers*) must use a HUD Registered Real Estate Agent. Registered Agents will submit bids on HUD homes on behalf of their buyers. Your broker will submit your bid On-Line. If your bid is accepted the broker will then have 48 hours to deliver your contract to MCB. The bid that is acceptable to HUD and has the highest net to HUD receives a provisional bid acceptance subject to receipt of all required documents. Once a bid is provisionally accepted, an original Sales Contract Package must be submitted to MCB within 48 hours.
Who can be an owner occupant in HUD purchases? Owner Occupant is defined by HUD as follows: Any individual(s) who purchases a HUD home as their primary residence for at least 12 months after closing and who has not previously (in the past 24 months) purchased a home from HUD as an owner occupant.
Does HUD make any repairs to the property? Short and sweet. No. HUD properties are sold in "AS-IS" condition. There are no representations or warranties, expressed or implied, on any HUD property. HUD does not guarantee the condition of any property, FHA-insurable or not, nor whether it meets local codes or zoning requirements. Buyers are advised that there may be code and/or zoning violations on these homes and that it is the responsibility of the buyer to identify these violations. Buyers should, and it is highly recommended to have homes inspected by a qualified home inspection company to satisfy themselves as to the condition of the home at the time of sale. Access to the Property Any and all buyers MUST be accompanied by a real estate broker when viewing any HUD home listed for sale.
Earnest Money? Earnest money is the "good faith" money that accompanies a contract or bid. HUD requires earnest money in the amount 1% of Purchase Price.
We are HUD home experts and HUD registered Brokers and will help you with any Real Estate questions you may have. Contact us now 303-955-4220
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Brian Burke | Broker | ePRO | Expert | 303.955.4220 Office | 303.710.2609 Direct | Brian@kennarealestate.com