What is a HUD Home?
A HUD home is one owned by the US Department of Housing and Urban Development (HUD). If a foreclosed home was initially purchased with a loan from the Federal Housing Administration (FHA), the lender files a claim for the balance due on the mortgage. FHA then pays the claim and transfers ownership to HUD who becomes the home owner and seller.
What You Should Know
- To purchase, you must use a HUD-registered real estate broker (hint: I am one)
- You must have a written pre-approval letter from a reputable mortgage provider
- Owner-occupying bidders receive first priority
- HUD offers three types of properties: FHA insurable homes, FHA insurable homes with a repair escrow, and homes that are not insurable with an FHA loan.
- You do NOT have to use and FHA loan as a purchaser.
- HUD homes are sold AS-IS.
- Before making a bid you must provide your HUD-registered real estate broker with the appropriate earnest money in the form of a cashier’s check.
- Your earnest money check should be made payable to the escrow account of your HUD-registered broker.
Recent Foreclosure and HUD homes in Nashville
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