Buying Government Foreclosed Homes in Georgia from HUD
Buying government foreclosed homes in Georgia from HUD now is well timed because currently, there are over 4,000 HUD houses throughout Georgia, according to marketing management firm PEMCO Limited.
HUD homes are one-unit to four-unit residential units that have been repossessed by HUD after their owners failed to pay their mortgage loans insured by the Federal Housing Administration.
Every buyer who has cash money or who can qualify for a home loan may buy an HUD home. Every time HUD repossesses FHA-insured homes, it first offers these homes to prospective owner-occupant buyers for a certain number of days. Within this period, owner-occupant buyers need to submit their bids through their HUD-registered real estate agents. If their offers are chosen, they need to close within a specified time.
After the initial offer period for owner-occupant buyers expires and there are still properties available, the HUD homes are then opened for bidding to investors.
Every HUD home is offered on as is basis, so prospective buyers need to inspect first the home before placing a bid. HUD also does not accept contingencies in purchase offers, so buyers need to read the contingency reports on the HUD homes.
Shannon of PEMCO Limited advises prospective buyers of government foreclosed homes from HUD to hire an agent experienced in HUD homes. She explained that real estate agents who have been buying HUD properties will know how to time their bids and how to set their price offers.
To look at HUD homes, visit the online listing sites of property management companies hired by HUD. You can go to portal.hud.gov/portal/page/portal/HUD/topics/hud_homes, which will lead you to management firms and listing agents in your state. Through the sites of these firms, you can see HUD listings available in your state and your neighborhood.
The listings include street addresses, house pictures, prices, areas, number of bedrooms and bathrooms, listing dates, deadlines for bids, property condition reports, escrow amounts and eligible bidders.
The listings also provide links to HUD registered brokers in your area and to information about bid submission. However, only HUD registered agents can submit a bid for you, so look for a registered broker that you can work with and one who has already purchased HUD homes.
According to housing analysts, the number of government foreclosed homes has been increasing in Georgia and in other states partly because of the increasing number of low-down-payment FHA-insured mortgages provided to borrowers who cannot really afford to sustain home loan payments.
