Has anyone bought a HUD home?

Question

Hi, I started getting interested in HUD homes so I can live in one. But now, I'm seeing some real advantage$$ in reselling one. Can I resell a HUD home in less than 6 months? Should I get or do I need a real estate license to do this? Do I need a lawyer present for buying a home? This will be my first home ever so I'd love any advice and greatly appreciate answers to my question.

Answer 1

First of all, HUD REQUIRES that bids be placed by a recognized, licensed real estate agent. HUD requires that if you are purchasing as an owner-occupant, you live in the property for 1 year before they will allow you to buy another HUD property as owner-occupant.

Make SURE to get an agent that has done some HUD deals. Ask the agent how many HUD bids they have placed and how many times they have filled out the HUD contract package. If someone hasn't done it, find someone who has. HUD purchases can be very daunting for agents who have never done them before. There are also time frames involved throughout the process, and things that the agent has to keep track of that an experienced agent knows about.

The bidding process is done on-line by the agent. This is also where it is important to have an experienced agent.

In order to be recognized by HUD, the broker at the company needs to apply. Once the broker is approved, any agent associated with the broker can sell HUD property. Getting recognized to sell is not a big deal. Most larger companys can do HUD deals, but there is no reason a smaller company can't do them also.

Answer 2

Well first of all purchasing a HUD home isn't like most real estate transactions. You have to bid on them. It's quite a process, but you can learn about that on their website. There are alot of people out there that have been doing this for along time. They know what to look for and which ones to bid on. It's not impossible, but pretty impractical, unless you have the fortitude to learn and take a shot at it. As for fixing them up and reselling then, any thing worthwhile costs money. Only you and your banker and decide if it's a good investment for them and you. It's not an easy process either. You don't need real estate license to buy or sell real estate, but I can tell you that not using a Realtor to help you sell, could cost you all the money you hoped to gain. Good Luck!

Answer 3

You NEED to read the info on the website with the list of peoperties...it will say Owner Occupant which mean you are buying the home for you to live in, after 2 weeks then the bids are opened to investors, which means you are buying to fix up the rent or fix up then sell. Your Real Estate Agent can tell you if its open to Investors or not. You can get all hud homes avail in your area at http://www.hud.gov/homes/ look for your state then city. Good Luck

Answer 4

Well there is just not enough space on this little box to tell you all about it. I have done real estate since 1973 and there is a lot that I still have to learn about HUD I constantly use this site http://www.hudclips.org/sub_nonhud/cgi/hbks.cgi?hbks for all information on HUD and for educational purposes when I teach real estate at the University so I recommend that you go in there and get ready for a lot of reading.
Buena Suerte

Answer 5

Check out http://www.hud.gov/homes/index.cfm for buying and selling a HUD home. This is a government web site, so you can be certain that the information isn't bias to any private business.

If you do enough of your own research, you wouldn't need a lawyer. However, keep in mind that you might deal with people who have very little too loose, with lawyer or not there will be some unpleasant interactions.

Best wishes.

Answer 6

i agree 100% with txrealest (sorry for misspelling). i purchased couple HUD houses and most of them are for people who intend to live with them, not for investors. you have to live in this house for 12 months, but if you want to sell this house before that , absolutely you can.

Answer 7

check with your states real estate laws.