All about Atlanta HUD homes
Question 1: What is a HUD home?
Answer: HUD program is controlled by The U.S. Department of Housing and Urban Development. The lender forecloses on the home, if someone with a HUD-insured mortgage can't meet the payments. HUD takes ownership of the home and pays the lender what is owed. Then HUD sells house at market value as soon as possible.
Question 2: Who can buy a HUD home in Atlanta?
Answer: Anyone can! If you have the cash or you can qualify for a mortgage, you can buy a HUD home. HUD employees and relatives of HUD employees are eligible, but they must receive written approval from the director of HUD's Office of Single-Family Asset Management in order to purchase a HUD-owned single-family property.
Question 3: Are HUD homes meant for people with low incomes?
Answer: HUD homes range in price, but most are affordable for low- and moderate-income Americans.
Question 4: Is it true that I can get an Atlanta HUD home for a dollar?
Answer: No. HUD sells homes at market value. That means the price is set based on the price of similar homes sold in the area.
Question 5: If the HUD home needs repairs, will HUD make them?
Answer: HUD homes are sold "as-is," without warranty. That means that HUD will not pay to correct any problems. But even if a HUD home needs fixing up -- and not all of them do -- it can be a real bargain! For example, HUD's asking price on the home will reflect the fact that the buyer will have to invest money to make improvements. HUD might offer special incentives such as an allowance to upgrade the property, a moving expense allowance, or a bonus for closing the sale early. And on most sales, the buyer can request HUD to pay all or a portion of the financing and closing costs. Your real estate agent will have details. We encourage you to get the home professionally inspected before you make an offer so you will know what repairs you may have to make before you submit your bid.
Question 6: How do I buy a HUD home?
Answer: Start by finding a participating real estate agent. Your real estate agent must submit your bid for you. Normally, HUD homes are sold in an "offer period." At the end of the offer period, all offers are opened, and the highest reasonable bid is accepted. If the home isn't sold in the initial offer period, you can submit a bid until the home is sold. Bids can be submitted any day, including weekends and holidays, and they are opened on the next business day. If your bid is acceptable to HUD, your real estate agent will be notified, usually within 48 hours.
Question 7: What happens after my bid is accepted?
Answer: Your real estate agent will help you through the paperwork process. You'll be given a settlement date, normally within 30-60 days, by which you need to arrange financing and close the sale. Otherwise, you must forfeit your earnest money deposit or pay for an extension of your sales contract. HUD offers an excellent booklet to help you understand the settlement process: "Buying Your Home - Settlement Costs and Helpful Information." When you buy a HUD home, the selling agent's commission will be paid by HUD, but only if you make this a condition of your offer. The listing agent's commission is always paid by HUD, who will pay a total sales commission of up to 6 percent.
Question 8: How can I find out what HUD homes are for sale?
Answer: HUD updates its online list of Atlanta HUD homes for sale every day. If you see one that interests you, contact one of the real estate agents in your area who shows HUD homes. They can help you from there.
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Question 9: How can I get a loan to buy a HUD home?
Answer: HUD doesn't make loans directly. But there are a number of mortgage insurance programs that can help you buy a home. Contact a HUD-approved lender, and he or she will take you through the steps and actually make the loan.
Question 10: Can I buy a HUD home as an investment?
Answer: Most HUD homes are initially offered on a priority basis to owner occupant purchasers (people who are buying the home as their primary residence). After the priority period, unsold properties become available to all buyers, including investors.
Question 11: Is there anything else I should know about Atlanta HUD homes?
Answer: The HUD website offers additional consumer information. Houses built before 1978 may have lead-based paint, which can injure your family; so be sure to read about this hazard and about what you would need to do to correct it. Teachers and law enforcement officers can qualify for 50 percent discounts in certain situations.
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