What is a HUD Home?

A HUD home is a 1 to 4 unit residential property acquired by HUD. On a foreclosed home that was originally financed 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, transfers ownership of the property to HUD, which then sells the home 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.

How are Columbus HUD Homes sold?
All properties available for purchase by the public are offered for sale at Internet listing sites maintained by management companies under contract to HUD. Currently Ohio has 3 different asset managers. All HUD properties for the entire United States are listed on www.HUDHomeStore.com

Can I Buy a Columbus HUD Home Directly from HUD?
No, you have to use a HUD registered real estate agent. HUD employees do not work with buyers. I am a HUD registered bidding & listing agent with an excellent track record and can guide you through the whole process!

Do I simply make an offer to purchase a home?
HUD owned properties are sold using an internet bidding process. ONLY HUD REGISTERED AGENTS like myself CAN BID. New listings are published DAILY and offered for owner-occupants only during the first 10 days. All bids will be reviewed on day 11 and if there were no acceptable bids, the property will be offered for another 20 days for owner occupants only with a daily bid deadline. 

Once a bid has been accepted, your agent  has 48 hrs to submit your contract and all other paperwork to HUD. More on that to follow …

Thanks for reading our Columbus HUD Homes Blog
Posted by: Susanne Novak, ABR, FIS 
Specializing in HUD Homes, Shortsales, Investment Real Estate
(614) 975-9650

HUD’s management company (NHMSI) posted the following announcement on March 6, 2009:

“RETURN OF EXECUTED CONTRACTS WILL BE DELAYED 3-4 WEEKS DUE TO THE FACT THAT AT THIS TIME THERE IS NO CLOSING AGENT IN PLACE TO SERVICE CONTRACTS SIGNED AFTER 02/28/2009. WATCH WEBSITE FOR FURTHER INFORMATION.”

This means that you will have to plan for closing delays of at least one month. You can still submit contracts and bid on Columbus HUD homes, but you won’t get the executed contract back for 3 or 4 weeks. Most lenders require that executed purchase contract before you can apply for your loan.

We recommend you plan your closing two and a half months out. This means we are talking end of May for contracts submitted this week. If you can’t wait that long, I suggest you call me and we’ll submit offers on other Columbus houses, such as a bank owned properties or short sales listed on the MLS.

I will keep you updated, if anything changes.

Thanks for reading our Columbus HUD Homes Blog
Posted by: Susanne Novak, ABR, FIS, GRI 
Columbus Realtors specializing in
HUD Homes, Shortsales, Investment Real Estate
(614) 975-9650