OFFICE: 678-261-1234

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Part I

HOW A HOUSE BECOMES A HUD

HOME

Please call us…

Tom Walters : 770-806-9997

Office: 678-261-1234

www. hudhomestore.com

HOW A HOUSE BECOMES A HUD HOME

By the end of

this lesson,

you will know

more about

foreclosures

than 99% of

all realtors.

99

%

FORECLOSURE STEPS

1. A Home is Foreclosed Upon

2. The Mortgage Holder Transfers the

Property

3. HUD Pays the Mortgage in Full

4. HUD Assigns the Property to the

“M&M” contractor

5. The “M&M” Assigns the Property to the

Listing Broker

6. The Listing Broker then Lists the

Property with the Multiple List Services

7. The Selling or Listing Brokers Place

Bids on HUD Properties

WHAT IS A FORECLOSURE?

A property “taken back” by

the bank due to failure to

make mortgage payments.

This default is called a

foreclosure.

BANK FORECLOSURES

Banks are not in the

business of buying or

selling properties.

Their goal is to sell

these houses and get

them off their books as

quickly as possible.

BANK OWNED PROPERTY

If the property is “FHA

Insured” the bank

transfers the property to

HUD. HUD re-

imburses the FHA for

expenses. This means the

property is officially a HUD

home.

WHAT IS HUD?

HUD is the U.S. Department

of Housing and Urban

Development. HUD was

established to strengthen

communities and promote

equal housing opportunities

by providing affordable

mortgages. HUD does this

through FHA insured

mortgages. This is a good

option for first time home

buyers because they require

a smaller down payment

than a conventional loan.

HOW DOES IT WORK?

HUD is required to pay off

the bank.

HUD take ownership of the

property.

The property becomes a

HUD home.

A HUD Home is one, that is part

of the Federal Inventory of

homes originally financed

through FHA insured loans.

WHAT IS THE FHA?

The FHA is a federal

agency that insures

mortgages. The

FHA does NOT lend

money, build

houses , or

foreclose on

homes.

WHAT DOES HUD OFFER?

HUD offers:

INCREDIBLE INSEntives!

HUD enlists Marketing &

Management Contractors (M&M)

to help sell the properties.

The M&M is responsible for the

cleanup and securing of a

property.

These homes are then assigned to

a Broad Listing Broker (BLB).

WHAT TO EXPECT• HUD homes are sold in “as

is” condition.

• HUD makes no repairs to

the houses.

• HUD recommends all

purchasers get a complete

home inspection.

• Many of the houses do have

ESCROW repairs requiring

you to have repairs done

after closing.

• If you find that your home

needs more repairs, you can

get a special 203K FHA loan

.

HOW TO FIND A HUD HOME?

WWW.

HUDHOMESTORE.COM

This website will provide

you with information that

is accurate and constantly

being updated.

Information in the multi-

lists can be inaccurate

due to bids being

accepted by HUD. This

website is very user

friendly . Please contact

the listing broker for

additional information.

HOW TO BUY A HUD PROPERTY

To buy a HUD home,

you must be a broker

or licensed agent

registered with HUD.

Buyers cannot directly

bid.

Only a registered agent

can submit a bid.

Your agent is required to

submit contract to the

M&M so it can be

received within 24

hours

HUD INCENTIVES

HUD must sell these homes.

HUD pays the listing agent and selling

agents commission.

HUD will finance some repairs.

HUD lists homes below market value.

HUD will pay for the attorney’s fees

with HUD approved attorney.

HUD will sell the house with a $100

down payment for owner occupants.

These are little know

incentives!

I hope that this lesson has

helped you to understand

how a house becomes a HUD

home. Please check out some

of our other lessons to help

you purchase your new

home. If you have any further

questions, please contact

Tom or Carolyn Walters at

770-806-9997.

Thank you!

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