The HUD Transaction: A Step by Step
I receive a ton of question about the
HUD Home Buying Process, I love to answer these question as I love to Educate Home Buyers on the options they have as a home buyer! In Arizona's current market, we typically have three types of Sellers we deal with, Bank Owned, Short Sales and
Govt Foreclosed Properties AKA HUD Homes. These homes are priced a lot less than the other two types, these homes are Move in Ready and FHA Insurable, these homes have been inspected and appaised, so even though you are buying them as-is (like all the others) you Actually Know the ins and outs of the home prior to me placing that winning bid on your behalf!
To make this as easy as possible for you to understand, I have number the steps, 1-20.
Prior to listing:
1. Lender deeds property to HUD
2. Property is inspected and secured by MCB
3. Property is prepared for market
4. Property is appraised
5. The price is determined
6. Property is listed on the MLS and on the internet
After property is listed:
7. Real estate agent may show property to prospective purchasers
8. Real estate agent completes sales package with purchasers
9. Real estate agent submits a bid electronically
10. Bids are reviewed to determine best net offer to HUD
11. Bid acceptance posted on internet
After an accepted offer:
12. Earnest money held by Real Estate Broker
13. Sales Package is sent via overnight mail
14. If sales package is complete and correct, sales contract is signed
forwarded to HUD's designated closing agent with a copy to the Real
Estate Agent.
After a ratified sales contract:
15. Earnest money delivered to HUD's Closing Agent
16. Open escrow with HUD's closing agent
17. Buyer secures financing
18. Purchaser(s) perform a home inspection
19. Sale closes at Closing Agent's office
20. Purchasers re-key the locks after close of escrow.
AZHudHomeStore@Yahoo.com
The HUD Transaction: A Step by Step
