A HUD Property is a Home that was originally financed through a Bank with an FHA loan. When a Bank Forecloses on a Property, then can file against the Mortgage Insurance and receive payment and the home becomes a HUD Property. HUD does not foreclose on homes.
There are several listing periods for HUD Properties. During the Exclusive Listing Period, only an Owner Occupants, Non Profits and Government Agencies may purchase a HUD Property. This period is the first 15 days that a home is on the market if it is a home that qualifies to be financed using an FHA loan. This is called ‘Insured’, or ‘Insured with Escrow’. The Escrow is for a home that only has minor lender required repairs that total less than $5000. Other homes that are ‘Uninsured’ are homes that need more than $5000 in repairs. These homes become eligible to All Bidders after only 5 days. All bids that come in during the initial 10 days are considered to have been received simultaneously and are all considered in one batch on the 11th day. After that, bids are looked at every business day.
Another listing period is called the Lottery. The Lottery Listing Period is the first 7 days that selected homes are on the market. These homes are in Revitalization areas and are eligible to Teachers, Police Officers and Firefighters for a 50% discount.
Sherry Keeble teaches a detailed HUD class each month in New Braunfels, Seguin, or San Marcos. You can sign up for a class at www.EXITRealtyNewBraunfels.com or with Angela Hurry at 830-627-3948.