Let me start by saying that HUD homes for sale have nothing to do with HUD rentals. FHA mortgages are insured by HUD. When an FHA mortgaged property goes through foreclosure, the lender will take out its insurance policy with HUD. HUD will then pay the lender and the property will become HUD’s to resell, simple explanation. HUD insures 1-4 unit dwellings, so duplexes, tri-plexes, and quads are possibilities too. HUD properties can be in all price ranges and any neighborhood really.
HUD lists these properties with local brokerages. There are about half a dozen brokerages in Duval County that list HUD properties – my brokerage, Magnolia Properties, happens to be one. HUD pays to have an appraisal done and the house is listed at market value. Great thing about HUD properties is that they guarantee clean titles, no liens, no bills, such as HOA back dues, etc.
The first 7-10 days a property is on the market only homeowners, non-profits, and government agencies can have bids placed on properties. After that, the bid process opens up to investors. Investors do not get an inspection contingency and they cannot get an inspection prior to bidding – so know what you are looking at if you are an investor or bring someone you trust who knows about properties when viewing the home (homeowners have an inspection contingency). Purchasing for a second home is considered an investment purchase.
How do you find a HUD home for sale? Check out http://www.HUDHomeStore.com. Use the county field and type in “Duval” for the quickest serach of our area. Anyone can search on here. However, only registered agents can bid on properties. Ask you agent if they are a registered agent – many are not.
HUD properties can be great purchase opportunities, check it out and work with an agent who understands the process so you don’t miss out!