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HUD-About
  If you are interested in purchasing a HUD owned home for personal use or as an investment, you have come to the right place. Today's market has presented some wonderful opportunities for purchasing real estate. HUD homes are an excellent choice when looking fora great bargain at or below market pricing. 


My hope is that this page will provide you with the basic knowledge you will need for purchasing a HUD home. Not every agent is a HUD Registered Real Estate Agent...I am registered and would be happy to assist you in the selection and bidding process. After viewing this page if you should still have any questions, please don't hesitate to contact me.

Yvonne Coelet of Tenney Properties is one of Arizona's HUD-approved Local Listing Brokers.

BUYING HUD HOMES IN ARIZONA

Some Common Questions

What is a HUD Home?
When someone with a Federal Housing Administration (FHA) insured mortgage can't meet the payments, the lender forecloses on the home; FHA pays the lender what is owed; and then the United States Department of Housing and Urban Development(HUD) takes ownership of the home. Then HUD sells it at market value as quickly as possible.

How is Fair Market Value determined?
Fair Market Value is determined by a licensed FHA appraiser. Copies of the FHA appraisal are available to the lender by request after a property is under contract. If a property is exposed to the market without any acceptable offers then a reduction of the
listed price may occur.

How are HUD Homes Sold?
HUD homes are listed on the local Multiple Listing Service (MLS) and on the internet. Registered brokers and agents may place bids electronically on these properties on behalf of a purchaser. The bid with the highest acceptable net to HUD is selected as the provisional winner subject to timely receipt of all required documents. Once a bid is accepted an original Sales Contract Package must be submitted to BLB Resources with 48 hours.

Who can buy a HUD Home?
Any individual who can qualify for a mortgage or who can pay cash may purchase a HUD home. Purchasers must use a broker or agent who is registered with HUD to place a bid on a property.Purchasers must also have a pre-qualification letter from a lender or proof of cash funds in the amount of or greater than the property they are purchasing.

Please visit www.HUDHomestore.com for the following:

  • Inventory Selection
  • Bidding
  • Announcements


Selling Broker Handbook

AZ Handbook

Selling Broker Quick Reference Guide

 AZ Guide

How to Correctly Complete a HUD Sales Contract Package

Step-by-StepGuide

Completed Samples for AZ


HUD Facts and General Information:

Who can buy a HUD property?

HUD has identified five buyer types that are eligible to purchase HUD-owned homes. Certain conditions must be met to determine the eligibility of a buyer to bid on a particular home. Only registered bidders can make offers on properties. Home buyers must use a registered selling broker or selling agent to make an offer on their behalf.

Owner Occupant: Eligible owner occupants are individuals with a valid SSN who have not purchased a HUD property with the past two (2) years.They can bid on homes in the exclusive or extended periods. Owner occupants rank above nonprofits and government agencies in the bid selection process for exclusive and extended listings.

Investor: Eligible investors are individuals with a valid Social Security Number (SSN) or Employer Identification Number (EIN). They can only bid on homes in the extended phase and are ranked below other types of bidders in the bid selection process.

Good Neighbor Next Door (GNND): Eligible GNND buyers can find details on the program on the following web page http://www.hud.gov/offices/hsg/sfh/reo/goodn/gnndabot.cfm. GNND buyers can bid in lottery,exclusive, and extended phases, but can bid exclusively on insured single unit homes in revitalization areas in the lottery phase. GNND buyers are given preference over government agencies and nonprofits in the selection of a bid-winner in the lottery phase.

Nonprofit: Eligible nonprofit organizations,

(see http://www.hud.gov/offices/hsg/sfh/np/np_home.cfm) can bid on homes in lottery, exclusive, and extended phases provided they are in approved purchase areas. If the property is in the lottery phase, the home must be uninsured. Nonprofits rank below Government Agencies in the bid selection process for the lottery, but above them for exclusive and extended listings.Nonprofits cannot bid for dollar homes.

Government Agency: Approved government agencies can bid on homes in lottery, exclusive, and extended phases provided they are in approved purchase areas. If the property is in the lottery phase, the home must be uninsured. Government agencies can bid for Dollar homes.

See http://www.hud.gov/offices/hsg/sfh/reo/goodn/dhmabout.cfm for more information.

 

FHA Financing Availability:

 IN= Insurable Listing            Properties that are in sufficiently good condition to qualify as the collateral for an FHA 203(b) loan. This is the most common and simplest type of FHA loan.

IE= Insurable-Escrow Listing       Property is estimated to need less than $5,000 in repairs. Purchaser closes and  uses funds in escrow (from loan proceeds) to make repairs. Amount is added to loan balance and could be eligible for FHA 203(b) loan.

UI= Uninsurable Listing         Property is estimated to need more than$5,000 in repairs. Not eligible for FHA 203(b) loan but may be eligible for 203(k) loan.

 

Electronic Bidding & Submission

 

Insured/Insured with Escrow Properties:

5 Day Presale

      -Buyers in revitalization areas to local governments and qualified Non-Profit Organizations.

      -Good Neighbor Next Door Program

Day 1-14

      - Exclusive Sales Period

      -Owner Occupant Buyers

      -Non-Profit Organizations

Day 15-30

      -Owner Occupant and Non-Profit Organization bids are reviewed as received on day 15 and are considered simultaneous;highest acceptable net bid to HUD will be accepted.  

      -If no bid is acceptable, bids are viewed daily as they are received

Day 31-180

      - Extended Sales Period

      -If no Owner Occupant sales bid has been accepted, bidding is opened to the public without regard to occupancy.

      -Bids are reviewed daily until an acceptable bid is received

      -AM can reduce price and relist

      -During re-list, owner occupancy buyers get priority, but all bids are simultaneous

Day 181

      - $1 homes to local governments

Uninsured Properties:

5 Day Presale

      -Buyers in revitalization areas to local governments and qualified Non-Profit Organizations.

       - Good Neighbor Next Door Program

Day 1-5

      - Exclusive Sales Period

      -Owner Occupant Buyers

      -Non-Profit Organizations

Day 6

      -Owner Occupant and Non-Profit Organization bids are reviewed as received on day 6 and are considered simultaneous;highest acceptable net bid to HUD will be accepted. 

      -If no bid is acceptable, bids are viewed daily as they are received

Day 6-180

      - Extended Sales Period

      -If no Owner Occupant sales bid has been accepted after the Exclusive Listing Period, bidding is opened to the public    without regard to occupancy.

      -Bids are reviewed daily until an acceptable bid is received

      -AM can reduce price and relist

      -During re-list, owner occupancy buyers get priority, but all bids are simultaneous

Day 181

      -$1 homes to local governments

 

Important Information about HUD Homes

HUD's “AS-IS” Policy
All HUD homes are sold strictly “AS-IS”, this includes the responsibility of the purchaser to de-winterize the property. HUD does not make any repairs.There are no representations or warranties, expressed or implied, on any HUD property. HUD does not guarantee the condition of any property, FHA-insurable or not, nor whether it meets local codes or zoning requirements. Buyers should be advised that there may be code and/or zoning violations on these properties and that it is the responsibility of the purchaser to identify these violations.Buyers are encouraged to have homes inspected by a qualified home inspection company to satisfy themselves as to the condition of the property at the time of sale.

Repairs, Improvements, or Occupancy Prior toClosing
No work is to be done to ANY HUD property prior to the close of the transaction. An accepted bid is NOT a transfer of ownership. Purchasers do not own the home until it is recorded in their name. Purchasers may not use the home for storage of personal items or occupy the premises under any circumstances.


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