Amongst all the foreclosures in Charlotte, there are a reasonable number of HUD foreclosure homes too. With home prices in Charlotte not seeing too much variation over the last couple of years, and with HUD foreclosure homes generally selling for lesser than their market values, an increasing number of home buyers are looking at them as viable options.
Banks and lenders foreclose on a house because of the home owner’s inability to pay on the mortgage/loan. These homes are then sold as bank Foreclosures.
In the case of HUD foreclosures, these homes have been foreclosed upon by various government agencies because to unpaid taxes or/and fines by the property’s home owner. After foreclosure, these homes are transferred to the Department of Housing and Urban Development and sell as HUD foreclosures.
Homes which are bought using FHA insured loans can also end up selling as HUD foreclosures. This would happen when, upon foreclosure, the lender asks FHA to pay what the borrower owes on the loan, and upon receiving this payment, transfers the home to FHA, which in turn transfers it to the Department of Housing and Urban Development.
Therefore, HUD homes being sold are not very different from bank foreclosures being sold, in a way that both of them are sold to recuperate incurred losses. However, the procedure to buy both these types of foreclosure homes is different and must be studied carefully.
To buy an HUD foreclosure home, ideally, you should get in touch with an HUD approved real estate agent. This is because all HUD foreclosure homes sell through a process where sealed bids have to be placed via these agents. Besides, the agents also help you understand the complexities of the buying procedure. You can also ask the agent to help you find HUD foreclosure homes.
The Department of Housing and Urban Development is known to pay the agent’s fee if the agent mentions it within the contract.
Your agent can arrange for you to inspect the houses that you have on your list. Inspecting these houses is necessary as this would help you decide how much you would be willing to pay for which home (you will find different houses in different states of neglect). There are professional home inspectors available and they know exactly what to look for.
After the initial bidding process, the bids are opened collectively and the house is usually sold to the highest bidder. People wanting to inhabit the home, however, are given first preference.
Since buying an HUD foreclosure can be a little daunting for the novice home buyer, do not hesitate to take professional help if the need arises; and remember, plenty is available.
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HUD Fair Housing Equal Opportunity
