Tips on Buying an Indianapolis HUD House for Sale

Article about purchasing Indianapolis HUD homes for sale and investing in Indianapolis real estate brought to you by the Indianapolis Realtors at ICON Realty Partners, LLC.

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Tips on Buying an Indianapolis HUD House for Sale

Posted by ICON Realty Partners on Thursday, October 7th, 2010 at 8:50am.

The Federal Housing Administration (FHA) is a part of HUD - the part that provides federal mortgage insurance. If a foreclosed home was purchased with a loan insured by the FHA, the lender can file a claim for the balance due on the mortgage. FHA pays the lender's claim, then transfers ownership of the property to HUD, which sells the home.

One significant difference between a HUD house and a traditional house, is that you will need to enlist the services of a HUD registered real estate broker to gain access HUD homes. HUD homes can only be accessed by HUD brokers and HUD brokers are the only ones who can submit your offer to HUD. The offer starts out on paperwork but is submitted electronically to the HUD system.

The selling process for a HUD foreclosure is different as well. It starts with an Offer Period, during which sealed bids are accepted from your agent. Owner occupants get to bid on the HUD houses for sale for the first ten days the listing is active.  After the first ten days, if there is not an accepted bid, investors can then bid for the property.  At the end of each period, all offers are opened. HUD will generally accept the highest bid, or the bid that brings them the highest net. If the home remains unsold after the initial period, bids are opened as received. Keep in mind that the owner occupants get first priority when HUD considers bids.

Here’s a few other things you need to know:

  • Get your financing before you make an offer.  You will need an approval letter in writing with your offer.
  • Any changes after HUD accepts you initial offer will result in getting the offer tossed out.
  • The houses are sold as-is, and no improvements will be made to the property.
  • The highest reasonable bid will be accepted.
  • Teachers and law-enforcement officers may qualify for special discounts on HUD homes.

All ICON Realty Partners agents are certified HUD agents and know HUD's process very well. Please contact us today for more information.

 

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2 Responses to "Tips on Buying an Indianapolis HUD House for Sale"

An Indianapolis Rental Property Business: 5 Tips for Success wrote: [...]ally.Buy right.  Get an experienced agent in the area you are searching and perhaps purchase a HUD home, short sale, or a forclosure to lower your cost. Indianapolis Rental[...]

Posted on Friday, October 8th, 2010 at 8:19am.

Rebecca Williamson wrote: Coming from an area where there are essentially no HUD properties, I can see how many would find this post useful. There is definitely a different process and its great that you've given your readers an idea what to expect. Great post.

Posted on Monday, October 18th, 2010 at 2:29pm.

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