HUD Homes In Central Pennsylvania
Go to: How To buy a foreclosure in Central PA
HUD Homes Foreclosures – What Are They? - Skill Level Beginner
Of all types of foreclosures for sale in Central Pennsylvania, “HUD homes” are the simplest to find and purchase. At the same time, there are always pitfalls to be aware of.
The U.S Department of Housing and Urban Development (HUD) acquires distressed properties because homeowners are foreclosed upon who had an FHA-insured mortgage. HUD becomes the owner of the property and offers it for sale through regional brokers in order to recover the loss on the foreclosure claim. Note that HUD homes are only residential properties with 1-4 units on the property, which includes single family foreclosures, condos, townhomes and most residential foreclosures in PA.
HUD homes in PA are advertised on www.HUDhomestore.com. There aren’t very many for sale at any given time inCentral PA, and you need to keep an eye on the listings as they tend to come and go quickly due to the many people watching for “deals”. Only official HUD home brokers such as Coldwell Banker Select Professionals are allowed to place bids on properties, by the way.
One major advantage for buyers looking to buy their own home (called a “primary residence”) is that HUD gives priority to these buyers. When a new HUD home is listed, there is an initial time period where only “owner occupants” can place a bid on HUDhomestore.com. Since many buyers are investors looking to “flip” or rent the property, it you’re planning to live there you have the edge for a few days…but beware, HUD is watching; don’t try to fake being an owner occupant.
Buying a HUD home foreclosure is considered beginner level because, while the property is sold “as is” like all foreclosures, the government has the house inspected and provides you with a written report up front, in addition to allowing a “repair escrow” where you set aside some money to deal with the repairs they list. Generally, this is not much. Most importantly, FHA mortgage financing is allowed (it’s the government, after all) which is a great option for a good rate.
Things to be prepared for when buying HUD home foreclosures:
1 – Have money set aside for repairs as there often are some.
2 – Read the listings on HUDhomestore.com thoroughly and review the published reports. You’ll have a good idea of the condition very quickly.
3 – Hire a real estate agent who understands the HUD home process and has placed bids before. They must also work for a HUD-authorized broker inPennsylvania.
4 – Be ready to look at new listings with your agent quickly once they come up. Also be ready to take advantage of the owner occupant period to beat out the investors.