Your First Home

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Rodney Kennedy

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6l5-778-l8l8
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Nashville - Franklin
9175 Carothers Parkway
Franklin, TN
Below are answers to some general questions regarding HUD Homes:

What is a HUD property?
How do I find HUD properties?
How do I buy HUD properties?
How much cash do I need?
Can I buy HUD properties for $1?
What should I be aware of?
Information provided by HUDhomes.com
Equal Opportunity Housing

What is a HUD property?
The U.S. Department of Housing and Urban Development (HUD) is a federal agency that insures mortgages to homeowners through its Federal Housing Administration (FHA). HUD acquires properties from lenders that foreclose on FHA-insured mortgages and HUD then offers them for sale to the public. These properties are properly referred to as "HUD owned." Technically, they are not "HUD foreclosures" or "HUD repossessions" because HUD is only the receiver of the property AFTER the mortgage lender has completed the foreclosure. Although HUD becomes the owner and sells the property, it did not foreclose, because only the mortgagee had that legal responsibility.

How do I find HUD properties?
hudhomes.foreclosure.com is your single best resource for HUD homes nationally. HUD also advertises to the general public through over a dozen asset management and marketing (M&M) companies that are contracted by HUD to maintain and sell its properties. You may check the HUD Web site for the names of M&M Contractors who list the properties by posting them on their respective Web sites. You can also find HUD properties by contacting Realtors® who are subcontracted by the M&M Contractors to list and sell them. These brokers list the HUD properties assigned to them in the Multiple Listing Service (MLS), where they are accessible to other MLS members. Ads in your local newspapers or contacts with local real estate brokerages may enable you to learn the names of brokers who have registered with HUD to show and sell HUD properties in your selected areas.

How do I buy HUD properties?
Bids to buy HUD properties must be submitted during the bid period through a registered real estate broker. Your agent will generally submit your bid using HUD's Web-based, electronic bidding process. A computer system stores the bids until the end of the offer period, which is the bid opening date, and automatically performs the calculations to determine which bid offers the highest net proceeds. If you are the winning bidder, the M&M Contractor, acting on behalf of HUD, will notify your agent who will then notify you. The agent must then submit your signed sales contract (on the HUD-9548 form) within 48 hours, reflecting the offer that was made electronically and that became the winning bid. The agent should have all the paperwork you need. Once your contract is submitted and approved, HUD will ratify the contract and schedule your settlement date to occur within 30-60 days.Return to Top

How much cash do I need?
HUD requires an earnest money deposit as low as $500 (for properties that sell for $50,000 or less) that must have been supplied to your real estate agent at the time of electronic bidding. This deposit will be submitted to the HUD Closing Agent immediately after your bid is acknowledged as the winning offer. You will have time to finalize your financing, but you must submit a pre-qualification letter from a lender at the time your contract package is sent to the M&M Contractor.Return to Top

Can I buy HUD properties for $1?
No. Only registered state and local governments can buy HUD properties for $1. HUD offers some of its properties to government agencies to support community programs. These properties are not generally available to the public. As an individual, you can only buy HUD properties using the process described above.Return to Top

What should I be aware of?
Even though HUD property listings are available to the general public, there is an initial period during which only owner-occupants can submit bids. At the end of the period, if the properties have not sold, the bidding is opened up to both owner-occupants and investors. Properties available to investors are noted in the database. Also, make sure that your contract package is complete and that it exactly matches your bid. The package, with a copy of the pre-qualification letter and cashier's check for the earnest money amount, must be received within 48 hours after the bidding closed. Otherwise, HUD requires the M&M Contractor to cancel your bid and return the property to the market or offer it to the next highest bidder.Return to Top