Home Buying in Littleton>Question Details

Leslie, Home Seller in Golden, CO

What are the risks of purchasing a HUD home? I am also available for the teacher next door program...

Asked by Leslie, Golden, CO Fri Apr 18, 2008

I have noticed a lot of the homes I am looking at are Housing of Urban Development, but are not in urban areas?

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The challenge with HUD homes is that they are hard to get...we "bid" on them and the best price "wins".
The purpose of the Teacher next door program (firefighter and police) is to bring professionals into depressed or low end neighborhoods to "improve" the demographic
0 votes Thank Flag Link Mon Feb 17, 2014
The risks of purchasing a HUD property are the same as buying any other property, thats why its so important to get a home inspection. Using that good neighbor next door program will work great for you also because of the hugh discount. HUD is Housing and Urban development, not specifically dedicated to urban areas.

Michael Huffman
Cherry Creek Properties
Cell 303-525-8721
Web Reference: http://YourDenverHouse.com
0 votes Thank Flag Link Wed May 2, 2012
Leslie, HUD, Housing of Urban Development, is the name of the government program that owns the property, it really does not have anything to do with where the property is located.
0 votes Thank Flag Link Sun Apr 29, 2012
Here is a link to Available HUD HOMES is the Denver Area.
If you like you may contact me about the Teacher Next Door Program
Brian
0 votes Thank Flag Link Sun Dec 27, 2009
Leslie-
A HUD is just another type of Seller. it is sold "as is"...buyer beware.
I say to all potential buyers out there...Call your Realtor and get off of the fence! With deadlines apporaching of the stimulous $ going away, supply of homes being down (under $250K), interest rates rising, you need to FOCUS now!
Give me a call and I can guide you though the process at no cost to you.
Kimberly Ryan
303-523-8333
Kim@BuyDenver.net
http://www.DreamHomeColorado.com
http://www.BuyDenver.net
http://www.BuyKenCaryl.com
http://www.Buy-Solterrra-homes.com
http://www.Buy4closure.com
0 votes Thank Flag Link Sun Dec 27, 2009
Leslie - As a realtor and also a real estate investor, I've purchased a HUD recently and it has been a good experience. Educate yourself and read the detailed information out there on this program ( if you haven't already). There are conditions (terms) you'll need to abide by if you purchase using the teach next door program. See http://www.mcbreo.com/forms/sales_packages/GNND_CDDA.pdf. and
http://www.mcbreo.com/forms/contract_forms/9549-b.pdf
Note that many of the homes in this program may be located in areas designated by city governments as NSP - Neighborhood Stabilization Programs. Google that and read up on that too. As always, inspections are always suggested for buyers. Kind Regards!
Esther Harnsberger
Realtor/ Broker Associate
Keller Williams Realty Success, LLC
http://www.YourDenverHomeSource.com
0 votes Thank Flag Link Wed Jul 22, 2009
Like purchase any other type of homes, they all have some risks involved if you don't do an inspection, check the http://www.hud.gov site, you will find out what is most likely happen when you buying a hud home.
Urban areas usually don't have a lot of HUD homes though.. do your home work first about how to buy a hud home, be sure to find a good inspector for it..after it is under contract, the price you pay is make up with the fix ups.
Rebekah Bleivns
ReMax Leaders ( Denver, CO)
rebekahblevins@remax.net
0 votes Thank Flag Link Tue Jul 14, 2009
Purchasing a HUD home is a sometimes good way to get a good home for a good deal.
Like in the other answer they are pre inspected and like any home purchase must or should be inspected by an Inspector of your choice once you have the home under contract.
0 votes Thank Flag Link Sat Apr 19, 2008
Leslie,

I have purchased a HUD house and have enjoyed living in it very much. It was "as is" but I knew that going into the deal and had a home inspector check it out for me too. I have had to fix a number of things in the house and spent quite a bit of money doing so but it was all worth it to me. I have looked walked through over 100 HUD homes as I searched for the one I live in now and as I see others come on the market. I have very much wanted to be a teacher so that I could get the incredable deal that you will get on a HUD home. 50% off of the price!! And if you have a good inspection done so you know how much repairs you will need to do then even though there are some risks the 50% discount more than makes up for it. There are risks in buying any house, even ones with a home warrenty. I really love my house. There have been a number of HUD homes that were beautiful "move in" condition. Of course the price is higher too but...at a 50% discount for teachers and police officers, if I found a house I liked in an area that I was happy to live in and then had my home inspection to make sure there was nothing HUGE wrong like the foundation etc...I would be jumping for joy to buy the house. Happy house hunting! You should get paid A LOT more money as a school teacher! But, since the pay scale for teachers doesn't seem likely to change anytime soon at least you get some bonus benefits that the rest of us don't get. I hope you get a Great Deal on a house and have a lot of equity when you sell down the road.

ps. there are hud houses in the middle of kansas and north dakota...they don't have to be in Urban areas. They have simply been insured by the government and it is the responsibility of the Department of Housing and Urban Development to sell these houses. There are some good realtors that will sit down with you and explain all of this to you. You can also go to http://www.hud.gov/ which will give you enough reading to explain everything to you or drive you nuts because of so much information (depending on you of course). Take care.
0 votes Thank Flag Link Sat Apr 19, 2008
There are no more risks in purchasing a HUD home than a bank or lender owned property. Probably it is less because HUD does a preinspection and if something is really wrong they do disclose like structural problems or non working furnace, etc. The process is done with a realtor who must bid for you online. It really is not time consuming in that bid deadlines when a HUD property goes on the market are usually 10 days out, then if they do not choose the bid they have daily bids. Owner occupied are given preferences. HUD usually requires a closing within 45 days from acceptance. All the folks I've dealt with as HUD administrators are very helpful and are accomodating when it comes to turning on utilities for the inspection process. Yes the homes are as is but so are most of the lender/bank owned properties.
0 votes Thank Flag Link Sat Apr 19, 2008
Leslie just because it is a HUD home does not mean urban. That is a government program foreclosure. The risk are the about the same with any foreclosure in that you buy it as is. Although the great thing about the next door program is that you get it for 50% of the price. So if you find a 100,000 list foreclosure you can buy it for 50,000. We just had a teacher here in our office sign on one at that price. Talk about instant equity. But, choose wisely and be prepared it is a time consuming process. Find a Realtor in your area familiar with the HUD process.

Good luck and happy house hunting.

Larry Story
Coldwell Banker Triad
0 votes Thank Flag Link Fri Apr 18, 2008
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