Q:

How do you buy HUD foreclosures?

A:

Quick Answer

You can buy a HUD foreclosure by finding a home you want on the HUD Home Store website and making an offer on the property through a HUD-registered real estate agent. The HUD Home Store lists one- to four-unit residential properties that were purchased with an FHA home loan and then went into foreclosure. There are rules regarding who is eligible to purchase a HUD home.

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Full Answer

To find a home, go to the HUD Home Store and search available foreclosures by state or zip code. Check to see if you are eligible to make an offer.

Some homes are only available to certain groups, such as government entities and nonprofit organizations, for the first few weeks they are on the market. If the first group does not purchase the property, it opens up to the next group, such as owner occupants.

Investors are usually the last group to get a chance at a HUD home if there were no reasonable offers made by someone from the previous two groups. HUD does not finance these properties, so the buyer must provide proof that the cash is available or that there is a mortgage preapproval when placing an offer on a property.

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