In these days of foreclosures, REO and short sales, we often gear the expression "HUD Homes." And while most buyers know that these homes are foreclosed properties, most do not understand the difference between a HUD home and other distressed properties.
Very simply put, a HUD home is a one to four unit foreclosed home that had an FHA guaranteed loan in place. When the borrower defaulted, the lender took possession of the property which was then turned over to the Department of Housing and Urban Development in exchange for a cash reimbursement.
This means that the government of the United States actually owns these homes outright, and can offer them for sale or dispose of them by any legal method under law.
There are other kinds of foreclosures that are not HUD properties and that may be owned by a bank or other investor. These houses are generally being held as REO (Real Estate Owned) properties by their respective owners. Each bank may decide on what to do with their properties, and how to dispose of them.
But HUD properties are sold by a singular and uniform method In the state of Georgia, a contractor has been hired by HUD to assist with accepting bids and assigning contracts to prospective buyers!
So while all HUD homes are foreclosures, not all foreclosures are HUD homes! Only those houses that had FHA guaranteed loans and now belong to the government are being offered as HUD homes!
Next installment: How do I find a HUD property in Georgia?
All content, including text, original art, photographs and images, is the exclusive property of Coweta Fayette Real Estate, Inc., and may not be used without the expressed written permission of Coweta Fayette Real Estate of ERA United Realty Newnan Georgia. All information is believed to be accurate but is not warranted, Copyright 2003-2009. Richard Weisser 770-827-6225.
Learn more about Coweta County and Fayette County Georgia Real Estate, and to search the entire Georgia MLS for free with no registration required visit CowetaFayetteRealEstate.com! Photos of the Great Smoky Mountains National Park.
Get the latest GA Foreclosure List Updated Daily! We Do HUD bids in Georgia! 770-827-6225
All content, including text, original art, photographs and images, is the exclusive property of Coweta Fayette Real Estate, Inc., and may not be used without the expressed written permission of Coweta Fayette Real Estate Better Homes and Gardens Metro Brokers, Newnan Georgia. All information is believed to be accurate but is not warranted, Copyright 2003-2009. Richard Weisser REOS, E-Pro. licensed Auctioneer. 770-827-6225.
Learn more about Coweta County and Fayette County Georgia Real Estate, and to search the entire Georgia MLS for free with no registration required. Visit CowetaFayetteRealEstate.com! Photos of the Great Smoky Mountains National Park. North Georgia Photos.
This sounds like a great series my friend. There are a lot of misconceptions out there about HUD properties, but I'm sure you'll clear those right up.
Richard: I agree with JL. This is a series I look forward to as well. HUD homes have a specific process for sales that is unique only to them. Looking forward to learning more.
Richard - Superb concept. Buyers will glean a lot of information from this series. I will follow this and pass excerpts to my buyers.
Richard" this is going to be a GREAT series! I've got to get started on mine tonight.....but I think mine will be a bit shorter....LOL!
Hi Richard, Great info for consumers. The first home I bought was a HUD home. It needed some elbow grease before we moved in, but we got a good deal on it and lived there for 10 years.
Hi Richard, This will be a great series. My husband and I purchased a HUD home in the early 90s as an investment - the bidding process was really easy back then, and one of the best investments we ever made.
You can find some great buys with the right assistance.
I am really looking forward to the rest of the series. HUD homes offer great opportunites for buyers who are willing to earn a little sweat equity to really make a difference in their lives.
Interesting. Sounds like you're onto a good topic for a series.
I agree I think this is an excellent series. I did some webpages for HUD homes on our site but now I need to think about writing more about them too. ~Rita
Sounds like a good series there Richard. Is that a picture of the courthouse in Macon?
Helping you live your American dream...
Nice explanation sir and one that everyone will be able to understand. I look forward to your series.
Are investors eligible to purchase these properties? I know of only one Realtor in our area that sells HUD homes.