To buy a HUD home, you must use a HUD approved Realtor. In order to qualify to sell HUD Homes, a real estate agent must get certified by completing and signing the HUD forms and any supporting documentation and submitting these to their local HUD Homeownership Center.
The Department of Housing and Urban Development (HUD) insures loans issued by the Federal Housing Administration and the Department of Veterans Affairs. They do not issue the loans; instead, they guarantee and financially back them. The agent’s broker must be HUD registered to represent either side of the transaction.
Unlike regular homes sold on the market, HUD homes are sold at auction. To view and bid on these homes, you must work with a real estate agent who has been approved by HUD. Before HUD properties are publicly listed for sale, they are first evaluated to ascertain if they qualify for direct, exclusive sale to units of local government and FHA-approved nonprofit organizations.
HUD properties that are not sold under any special programs are listed on HUD Home Store and offered on an exclusive, priority basis to owner occupant purchasers. Unsold properties are then made available for purchase to all interested buyers, including investors.
Your agent will be notified if your bid is accepted, and you will be given a settlement date, usually 30–60 days from the date of your accepted contract. HUD pays real estate brokers an industry-standard commission for facilitating the sale of its homes.
The sales process for purchasing a HUD home is more complicated than buying a home from an individual on the MLS, so do a little research before you jump on that HUD Home Store website or ask HUD approved broker’s agent David Roy Griffin to bid for you HUD homes of your choice.