Purchasing a HUD Home !!

First of all  A HUD home is a 1-to-4 unit residential property acquired by HUD as a result of a foreclosure action on an FHA-insured mortgage. HUD becomes the property owner and offers it for sale to recover the loss on the foreclosure claim.

Purchasing a HUD home can be good purchase, you will typically be able to get into a home or a neighborhood ,that you otherwise cant afford. However there is always a cost at moving up in the world.

When a HUD  home goes on the market it is offer under a sealed bid for 10 days. The bidding is usually open to owner occupants only .(investors get their chance if it is still on the  market after 30 days.)

A couple of things to know if you win the bid.

1. You are given 48 hours to return your paperwork and it must be signed in blue ink.

2. HUD homes are as is and they will not fix anything,However you still get a chance to do an inspection to see what you are getting into.

3. You are required to call the utility companies to turn on the utilities(in your name and your dollar) for the inspection. (HUD will not turn on utilities) . after you have received their permission.

4. HUD will give you 45 days to close if you need to extend the contract ,they will require an additional $375.00 dollars to extend the contract. Typically you will receive that back if you go through with the contract ,however HUD is not required to return the deposit.

5. A deposit (Earnest money) is required : $500.00 for a property under $50,000 or $1000.00 if the property is over $50,000. This is given back to you at closing towards your closing cost .  However if you back out for any reason other than losing your job or Death. HUD will keep your deposit !

If you have any other questions about HUD homes please email me @

fortworthrealtor1@yahoo.com


To Search for HUD homes go to www.hudhomestore.com


HUD also sends out an appraiser, before the home is listed and generates a repair report on the HUD website. This is very helpful to know the problems before you place a bid. However it doesn't Mean that you shouldn't hiring your own professional inspector.

US housing starts rise,and home-builder optimism hits 6-year high!!

U.S. builders started work on more homes in August, driven by the fastest pace of single-family home construction in more than two years.




The Commerce Department recently announced that construction of homes and apartments rose 2.3% to a seasonally adjusted annual rate of 750,000 last month, up from 733,000 in July.



Single-family housing starts rose 5.5 percent to an annual rate of 535,000 homes, the best pace since April 2010.



Since hitting a low of 478,000 in April 2009, the rate of home construction has increased by nearly 60%.



Additionally, confidence among builders rose in September to the highest level in more than six years, according to a survey released Tuesday by the National Association of Home Builders/Wells Fargo.

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