In response to the numerous inquiries I get about HUD houses for sale, here’s some information. HUD is the U.S. Department of Housing and Urban Development and they define their homes as follows, “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.”
People often view HUD owned houses as “bargains” – and sometimes they are. But don’t think you’ll be buying something for $100 because HUD sells at market value and AS-IS, no repairs will be made. If the home is listed as “IE – Insured with Repair Escrow,” the property needs no more than $5,000 in repairs to meet FHA insurable standards. The list of repairs and anticipated cost of these is fairly accurate, so if the buyer gets an FHA loan at purchase, the loan is insurable, so the buyer can finance the repairs into the home loan. Once repairs are made, the lender will release the escrowed funds to the buyer.
Buying a HUD home is a bidding process, but you don’t know how much others have offered. Upon the end of the bid period, HUD will review all bids and choose which is most satisfactory (the highest may not get it, for example, if they’re an investor going up against an owner-occupant).
I’m providing a list of HUD acquired properties in LaVergne and Smyrna with some brief information about each, including the price listed on the MLS by Progressive Realty, the management company in our area under contract with HUD. If you are interested in buying a HUD acquired house, please feel welcome to contact me.
302 Cedar Park Circle
2 bedrooms, 1 bath, 1124 square feet
$825 needed for required FHA repairs
106 Cedar Ridge Dr.
3 bedrooms, 1 bath, 1056 square feet
$908 needed for required FHA repairs
Appraised in March for $82,000
721 Judge Mason Way
3 bedrooms, 2 baths, 1400 square feet
Appraised in March for $81,000
Evidence of mold cleaned, not remediated
606 Polly Place
3 bedrooms, 2 baths, 1100 square feet
$550 needed for required FHA repairs