Foreclosures, short sales, loan modifications, blah blah blah. These terms seem to get all the headlines in the newspapers. But the little secret (for those of us who have been in the business for more than a couple of months), is that HUD homes are a great opportunity for first time buyers and investors.
A HUD home is a home that has gone through foreclosure, usually because of a delinquent FHA loan, and has been turned over to the Department of Housing and Urban Development (HUD). They have set up an efficient process to sell these properties as quickly as possible. You can see all the HUD homes in Colorado at http://www.mcbreo.com/, or go to http://www.hud.gov/ .
For first time buyers, HUD allows owner occupants to bid first-without having to compete with investors. In addition, if the buyer uses FHA financing, you can buy a HUD home with only $100 down payment in Colorado with a full price offer.
After the bid opening for owners, usually two weeks, then the properties become available for investors to bid. The bidding process is transparent, and you can see the results on line after the bid opening.
For instance, here is a HUD home at 2724 S Utica St, in Denver, CO. HUD is asking $175,000 for a 3 bedroom brick ranch with a two car garage. All of these homes are sold as is to the highest net bidder. As of this post, the owner occupants can bid until 1/17/2010 and then opens up the bidding to everyone else. If you would like more information on this home or any HUD home, send me an email, or give me a call.
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