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HOW
TO PURCHASE A HUD HOME
The following is a brief summary of the process as outlined by Southwest
Alliance, in purchasing a government owned home.
HUD homes may be purchased by anyone. The buyer must
however submit a pre-qualification letter from a lending institution or have proof that they can pay cash
for the home in order for a bid to be eligible. Homes may be purchased by owner-occupants
where the priority bid-period is 10 days or less. New Listings are posted on Friday of
each week. Investors may also purchase HUD owned homes, but their bids are only accepted if an owner-occupant bid
does not meet the reserved price in the first ten days a property is on the market. Reserved prices are not published for
any HUD-owned home.
HUD-owned homes are sold "AS IS", and are initially listed at the "as is"
appraised market value. The buyer may make any reasonable offer, but HUD will only agree to the offer that gives
the highest and/or acceptable return to HUD. Price reductions may take place if the home does not sell during the allotted
time. There may also be Daily Bids if the home remains unsold.
MAKING AN OFFER ON A HUD-HOME
Offers on a HUD-owned home must be made online through a HUD-registered broker like Synergy International Realty.
All offers are submitted through the internet via an online bidding process. The
highest bid (if error free), is acknowledged by Southwest Alliance to the broker who must send in a correct and signed sales
contract within 48 hours. Priority will be given to Purchasers who are owner-occupants and non-profits
for the first ten (10) calendar days or less, after a new listing is posted. Listings may be found on the Southwest Alliance
Web site @ www.bidselect.com , and then by clicking on Search Properties.
When offers/contracts are submitted,
the purchaser is required to deposit certified funds as earnest money in the amount of $500.00 for offers up to $50,000 and
$1,000.00 for offers in excess of the $50,000.00 amount. Earnest money must be deposited wih the agent or broker,
not with Southwest Alliance.
Closing on HUD-homes are generally within 30-60 days, and held at a closing agent's
office. Extension of time to close may be granted in 15-day increments, under certain circumstances.
If the sale
is to an owner-occupant, and does not close due to circumstances beyond their control, the earnest money may be returned.
It is the responsibility of the buyer to review the earnest money policy with their broker before placing a bid on a HUD-owned
home.
A certified HUD Broker can guide you further in the necessary steps to purchasing a HUD-owned home.
Synergy International Realty wishes you the very best in your undertaking, and stand ready to assist in guiding you in
acquiring your own home.
Call us any time @ (409)835-1111 Synergy stands ready to Help You !
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