| We are
the experts! Our office is the HUD listing brokerage
for Weber and Northern Davis Counties. We also work
with Fannie Mae, Wells Fargo, Countrywide, Homesteps
and many more! Simply fill in the form below for
FREE list of currently available Foreclosures, Bank
owned, and HUD Homes.
HUD Homes—What are They?
When an individual has an insured
mortgage by the Federal Housing Administration and
then can’t make their payments, the home is
foreclosed upon by the lender. At this point in time
the balance of what is owed to the lender is paid by
the FHA and subsequently the home becomes property
of the United States Department of Housing and Urban
Development. As quickly as is possible, the home is
sold at the current market value. The properties are
sold or maintained by MCB, a marketing and
management contractor for HUD 1 to 4 properties,
according to the guidelines set forth by HUD.
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HUD Homes—How
are they Sold?
The MLS, Multiple Listing Service,
and the Internet lists the HUD homes for sale.
Electronic bids may be placed by agents and
registered brokers on a purchaser’s behalf. The bid
that is the highest and that meets the HUD
requirements will be chosen as the provisional
winner depending upon the receipt of the necessary
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HUD Homes—Who
Can Buy One?
A HUD home may be purchased just
like any other home. As long as an individual has
cash to pay, or qualifies for a mortgage, then a HUD
home may be purchased. However, a broker or agent
registered with HUD must bid on the property for an
interested individual. An additional requirement is
that potential purchasers have proof of cash or a
pre-qualification letter for a mortgage before
buying a HUD home. back to top...
HUD Homes--Who
May Sell One?
A HUD home may be sold by any broker
registered with HUD or any licensed real estate
broker. Brokers and agents should be registered with
HUD before they begin trying to sell a HUD home.
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Property
Access
Potential purchasers of a HUD home
must be accompanied when visiting one of these homes
for sale. HUD regulations require that all potential
buyers be accompanied by the broker or agent at all
times when visiting the home before closing. Any
problems accessing a property should be addressed
with the local broker, who is identified on the
internet. Individuals performing certifications,
inspection, appraisals, or other services must be
accompanied by a broker or agent as well. Keys are
only allowed for agent or broker use and are not
allowed to be borrowed by others.
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Repairs, Improvements, and Occupancy Before Closing
No work may be done on any HUD
property before closing. Even though a bid is
accepted, that does not mean ownership has
transferred. The home is not considered sold until
it has been recorded with the buyer’s name. The home
may not be entered, occupied, or used for storage
until the ownership has been transferred. Doing so
is considered trespassing, which could result in the
cancellation of the sale, forfeiting deposits, and
even bidding privileges suspension for the agent
firm. back to top...
Financing Requirements for a HUD Home
Financing is not provided by HUD for
HUD properties. FHA financing, cash, or typical bank
financing may be used to purchase HUD properties. A
mortgage pre qualification letter or a verification
of cash funds must be obtained prior to bidding on a
HUD home. back to top...
Short Sales—What
are they?
A short sale occurs when a property
has more money owed on it that it could be sold for.
These short sales may be closed in as quickly as
four weeks or as long as six months. Bids are
typically reviewed by a board of directors.
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Bank Owned
Homes—What are they?
When the bank takes back a property
because the mortgage was not paid, the property is
then referred to as a bank owned home. The mortgage
holder or bank is then referred to as the REO.
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What is Third
Party Approval?
During the first stage of foreclosure, sometimes the
lender allows the mortgage holder the opportunity to
sell the property. In order to do this, the mortgage
holder must be approved first and this is what is
referred to as “third party approval.” Sometimes a
"third party approval" can mean that a Relocation
Company will be involved, contact your Realtor to
find out if a particular listing has this situation.
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