You need to look at the GA HUD website: http://www.newbidselect.com/servlet/RouterServlet?p_build_pa
Being a teacher & first time home buyer also allows you special loans & first round selection of HUD homes. Also would recommend a lender that is experienced working with HUD loans. I can refer lenders to you if needed.
On this website it will explain the process to you. You will need an experienced HUD REALTOR like me registered to represent & place bids electronically for you.
There is a lot of information & details that canâ€™t possible be answered in a short blurb. But here it goes:
1. A pre-qualification letter from the lender must accompany your offer. This letter must indicate that the lender is aware that the buyer is purchasing a HUD home and that a credit report was to determine loan eligibility.
2. All offers are subject to mortgage insurance company approval. The buyer does not have a binding agreement until they receive a copy of the executed contract from the seller.
3. Earnest money in the amount of $500 (sales price under $49,999) or $1000,00 (sales price over $50,000) must be in the form of certified funds, money order or cashiers check made payable to the Selling Agentâ€™s Real Estate Company.
4. A HUD property is Sold â€œAS ISâ€. This means no repairs will be made. A home inspection is at the Buyerâ€™s discretion and expense and must be ordered 15 days od accepted contract. Buyer must request and pay for all utility service activations.
5. A termite letter is available and must be ordered 7 days prior to closing
6. Seller does not provide a Home Warranty Protection Plan.
7. Closing services will be preformed by Sellerâ€™s closing attorney. The purchaser may have their own attorney in addition to or in lieu of the sellerâ€™s; however this is at their own (the purchaserâ€™s expense).
8. All closing dates that are extended will be at the Buyerâ€™s expense. Extensions must be requested prior to the expiration of sales contract with a money order, cashierâ€™s check or certified funds delivered to HUDâ€™s closing attorney.
9. All closing packages must be at the closing attorneyâ€™s office 3-5 days prior to closing.
10. Terms in the sellerâ€™s addendum override any conflicting information in the GAR form.
Your contract has many time sensitive requirements. Go to the HUD sight and read the contract completely and if you have any questions do not hesitate to call me.
I would like the opportunity to represent & help you.
John J. Reinhardt
RE/MAX Greater Atlanta
Make sure whoever you use gives you a good, honest accounting of value, and factor in the repairs needed plus a comfortable cushion. Like I always tell my clients, if you can buy a $300,000 house for $200,000, but it needs $100,000 worth of work, you haven't saved anything, and actually cost yourself a lot of effort and time.
If you are looking for homes in the north east corner of the metro area (Gwinnett, Walton, or Hall counties), give me a call. I have no problem with taking the time necessary to walk you through the process.
John pretty much answered your question completely there.
The only thing I'd throw out there is that you should consider ALL homes, not just HUD homes. Foreclosures, REOs, HUD homes and other "distressed" or "foreclosed" sales are not always what they seem. Look at the complete market before making a decision.
Also, hire a Realtor, they cost you nothing. If you are going to look at HUD homes, make sure you have a HUD specialist! A good clue is whether or not they know about the intense deadlines and special keys to get into a HUD home.
Purchasing a HUD home can be a great idea for a first time home buyer or for a seasoned buyer. The HUD inventory is quite large right now creating a great opportunity to purchase a HUD home well below the market value. I am currently helping a first-time homebuyer right now where we have a house under contract for $30k below the HUD asking price with 3% in closing costs also being paid by HUD so he will have approximately 20% in instant equity.
An important thing to remember about HUD properties is that only real estate brokers that are registered and approved by HUD can bid and assist buyers in purchasing a HUD owned property. There is a formal process to bidding and buying a HUD property that is very strict and sometime arduous so it is important to use an agent that has had experience going through the process.
As a registered HUD agent I would be more than happy to answer any questions you have about the process or assist you in finding a great HUD property to call home. Please feel free to contact me at 678-595-4794 or at Brandon@NestBrokers.com
John did a great job running down the basics of purchasing a HUD home. I'm also a registered HUD sales specialist and my office is a (LLB) Local Listing Broker for HUD properties. Not only do we sell HUD homes, but we also list and market the homes for Pemco the contracted company for HUD homes in our area.
Access and knowledge about the HUD purchase process is an important step to buying a HUD home, but working with an agent who knows how to win bids on the homes is the key to getting the home you want. Our company has won more bids on HUD homes than any other company to date.
Visit http://www.hudpemco.com to search for HUD homes and we would be happy to assist you with your property search and purchase of your first HUD home.
This site can pretty much answer everything you need to know about purchasing a HUD home. If you need a Realtor to represent you and guide you through this process - I'd love your consideration!
Purchasing a HUD home has some similarities as purchasing a forclosure or short sale property, but there are some differences. It is probably easiest to work with a Realtor that has experience selling these homes, as well as access to the property listings, as well as the broker issued key to enter and preview the HUD homes.
Please let me know if I can help you purchase your first home!