Government Foreclosure Listings: What You Should Know
HUD (Department of Housing and Urban Development) or government foreclosure listings are a great place to find a bargain property. If you are an owner occupier who is looking to buy a foreclosure house to live in, HUD is a great place to start because you will not have bidding competition from investors. Generally, investors are unable to bid on government foreclosures within the first ten days; giving home owners a good chance to win the property auction first. Only if an acceptable bid is not received will the government accept a bid from an investor.
Here are some ideas and tips for buying government foreclosures, as well as some simple tips to help you through the process.
1. Make Quick Decisions
HUD will not give you a lot of time to think as they place time constraints on the bidding process, therefore you have to act quickly and be able to make decisions fast. You will have up to 2 weeks, but sometimes as little as 1 week, between the property coming on the market and the beginning of bidding. Usually properties are bought on the first day of bidding so make sure you can make prompt, confident decisions as second chances do not come often.
2. Follow the Market
Sometimes there are so many HUD homes for sale that prices are low as there aren’t enough buyers, but other times demand outstrips supply. You should keep and eye on the market
3. Owner Occupier vs Investor
HUD generally gives owner occupiers the first shot at buying their foreclosure homes. This is because they want to increase the number of people who own their own homes. So therefore home buyers have 10 days to bid on a foreclosure before investors are allowed to. You can only bid as an owner occupier once every two years, so make sure you always do it honestly.
Buying a HUD home is possibly the best way to get the home you want at a fraction of its regular market value. These tips for government foreclosure listings will assist you in beating the competition to get the HUD home that you want.
