California Hud Foreclosues

March 5th, 2007

HUD (Department of Housing and Urban Development) has residential foreclosures available throughout the United States including California HUD foreclosures. Be sure to do your homework before buying one of these homes as the process is not the same as it is when buying a home from an individual.

The process goes like this: the FHA or Federal Housing Administration is a part of HUD. The FHA provides federal mortgage insurance. If a home is insured by the FHA, a lender can file a claim for the balance due on a foreclosed mortgage. The FHA will pay the lender’s claim and then transfer the ownership to HUD. The California HUD foreclosure now belongs to HUD and can be sold by them.

California HUD foreclosed homes are priced at fair market value; however, a home in need of repairs will have a price adjusted downwards in order to provide for the buyers’ expense in making repairs to improve the home. HUD does not make repairs; remember that you will be solely responsible for this.

By visiting the state website, you can easily find California HUD foreclosure homes once you make yourself familiar with the search engine and layout of the site. Once you find a California HUD foreclosure home you are interested in, simply contact any HUD approved realtor in your area and they will show you the property. HUD does not have employees that work with home buyers; this must be accomplished through an agent.

California HUD foreclosure homes are sold by bidding. There will be an offer period when sealed bids are accepted from agents and at the end of the bidding period, the bids are opened. Of course, the highest bidder wins. If the home is still on the market after the initial period the bids will be opened in the order they are received. Should your bid be accepted, your agent will receive notification within two days. They will give you a date to settle which is typically anywhere from thirty to sixty days from they date they accept your contract. Good news! HUD will pay a commission of up to sic percent to your agent for the sale of the home provided your agent inserts wording in their contract that verifies HUD will pay their commission fees.

HUD does not provide any type of financing so before you bid, be sure you have financing in order on your California HUD foreclosure home. Because if your bid is accepted and you fail to close you are in danger of losing any earnest money you have deposited.

Please, have a professional inspect the home before you bid. As with any home, it will provide you with information you need to make an acceptable bid and the knowledge of what repairs, if any, will be required. Remember as well that California HUD foreclosure homes are available for people who want to live in them only; however, if no one bids, and then investors may bid on the property.