HUD Tips

I would suggest that if anyone is going to buy HUD homes that they deal with a HUD real estate broker or one of their agents within a HUD approved real estate agency. One can find out who these realtors are at HudHomeStore.com. If it just lists their name and not their address, cross reference the broker's name at their state's Association of Realtors, like the Texas Association of Realtors. Of course, if they are in a city, then there's also a local associaton, like mine is mine is the Amarillo Association of Realtors.

All HUD properties can be found easily and for free at BidSelect.com. That is the site where they are auctioned at, although only realtors can place bids for you. You click on the Search Properties button on the front page and then search by either county OR city and then state. If it's a large, densely poplulated, urban county, you might need to narrow your search by numbers of bedrooms, bathrooms, etc., but I've never done that, because I want to see all that's available in my area.

Don't buy HUD properties when they first go on the market. HUD will automatically mark the price down when the house has been on the market so many weeks. But, when they do mark it down, you need to place your bid that day, because other investors will be placing theirs. Also, you will need to have your offer, your proof of funds letter and your earnest money check ready on that day. You will have been watching the property (you can put it on a watch list at BidSelect.com) for thirty days, so you will have plenty of time to get all of your ducks in a row.

If the property is not marked down at the thirty day mark, please ask the broker to contact HUD and ask for the discount. Then, make your offer below the discounted amount, but don't go to low. If you go to low, the property will be sold to someone else, and your offer will be rejected automatically.

Please do not share this information outside of this forum without my permission. These are kinda' insider tips. If you want more information, you can send me a private message.

New year's blessings,

"Rick in Amarillo," Realtor