Here are some advantages of HUD Homes over regular bank-owned foreclosures
- If you are planning to live in the home as your personal residence, owner-occupants get bidding priority for the first ten days a HUD Home is listed. After then ten days, bids from investors are considered.
- Yes there are forms and addenda. With HUD Homes, there is one set of forms to learn about. With bank-owned foreclosures, it seems that they each have their own set of addenda to review and understand.
- With Indiana HUD Homes, prices are based upon an appraisal of the home. Many banks price their homes based on a broker price opinion, which is less comprehensive.
- FHA mortgages are available on some HUD Homes. If the home qualifies for an FHA loan, it will be in part of the property data made available at the time of the listing.
- HUD Homes in the Indianapolis area routinely have a Property Condition Report available to review. While this is no substitute for getting your own home inspection by a qualified home inspector of your choosing, it is HUD’s attempt to inform you about property flaws that they are aware of.
- With many bank-owned homes, getting in a rushed offer is essential. And then if there are multiple offers, the bank might ask you to up your price with a “highest and best” proposal. With HUD Homes you know that no offers will be accepted for the first ten days of a listing.
- When you place an offer on a HUD Home, you should know whether that offer has been accepted on the eleventh day of the listing, or after that by the close of the business day following they day your offer was submitted. With banks, they might respond quickly. They often respond slowly.
- For certain situations, HUD Homes can be purchased with a very low down payment. No, it’s not zero down, but it is close. If you are an owner occupant purchaser, this is worth looking into.
- Like most sellers, HUD will take less than their asking price. And over time, if they do not have an acceptable offer they will reduce pricing, sometimes aggressively.
To find out more about HUD Homes, be sure to contact me for more information.
Dan Rosenberger, Harvest Realty 317-709-2537