As you might expect, with the turbulent real estate market we’ve seen for the past 2 years and with unemployment rates at record levels, the end result is a growth in the number of foreclosed homes in the Fort Mill SC area. And even though we’ve been lucky here in the Fort Mill SC area, we’ve still seen our fair share of foreclosed properties available.
And while it’s always a sad situation when someone loses their home to foreclosure, it also presents a great opportunity for those looking to buy a house at a great price. There really are some amazing deals available for foreclosed properties right now, especially if you know where to look and how to buy them.
One of the best opportunities for buying a foreclosed house at a ‘steal of a deal’ is HUD homes, or properties that were financed via an FHA loan and then reposed. I’ve personally helped 5 people in the past 8 months purchase HUD homes and every single one of them has gotten an absolutely fantastic deal on their property.
According to the government’s website about HUD homes:
What is a HUD Home?
A HUD home is a 1 to 4 unit residential property acquired by HUD as a result of a foreclosure action on an FHA-insured mortgage. HUD becomes the property owner and offers it for sale to recover the loss on the foreclosure claim.
Who can buy a HUD Home?
Almost anyone! If you have the cash or can qualify for a loan (subject to certain restrictions) you may buy a HUD Home. HUD Homes are initially offered to owner-occupant purchasers (people who are buying the home as their primary residence). Following the priority period for owner occupants, unsold properties are available to all buyers, including investors.
So, if you’re in the market for a new home, it would definitely pay to take a look at purchasing a HUD home!
My only bit of advice would be DEFINITELY consult with an experienced real estate agent, and I don’t say that just to get you to call me (although that would be nice 🙂 ) While HUD would have you believe that buying one of their homes is an easy, painless process, it’s not. While most real estate transactions can be a stressful, frustrating experience at times, purchasing a HUD home is much worse.
You still have to go through all of the typical real estate paperwork and processes, but with a HUD home, you now have to do all of these things through a government agency, and as we all know, they aren’t always they easiest groups to work with!
Don’t let that discourage you though! Just make sure you work with an agent that has the experience and know-how to help make sure your HUD transaction goes smoothly and you’ll quickly be able to enjoy a fantastic new home at a great price!