by Dell Claiborne
I have been renting an apartment for several years. The other day I added up what I’ve paid in rent. Seeing it there in front of me made me want to buy my first home. I heard you can get great deals on foreclosed HUD homes. What are they and where can I find them?>
Wow, I’m sure that was an unbelievable amount when you saw it. The good news is that your decision to buy your first home couldn’t come at a better time. Our current market is ripe with great deals for buyers and interest rates on mortgage loans continue to fall to record lows.
HUD is the more common name for the US Department of Housing and Urban Development. Among the many agencies that fall under HUD’s jurisdiction is the Federal Housing Administration (FHA) which is responsible for insuring certain qualifying home loans. When a home financed with a home loan goes into foreclosure and doesn’t sell at auction, ownership reverts to the lender or bank. In a situation where the loan is insured by FHA, FHA will pay the lender what they are owed and ownership will revert to HUD. So that is how homes become known as HUD homes. HUD then contacts real estate agents in the area to list these properties for sale. HUD foreclosures can be found in the local MLS as well as, the HUD website, which is www.hud.gov. A local Realtor® can assist you with your search for homes, whether they are HUD foreclosures or not. Falling prices, low mortgage rates and a very large inventory make this the perfect time for you to find your first home. Your opportunities are great and not only relegated to foreclosures. Good luck with your journey to homeownership.