HOW TO PURCHASE HUD HOMES

Homes that had FHA loans that went into default become HUD repossessions. These homes are sold AS-IS, and therefore sell at a discount. There is a bidding process, where the buyer has to deposit money with the bid. Bidders are notified, usually in about a week (depending on when the bid was entered) if they are the winning bid. It takes a little extra effort, but for buyers looking for bargains under the $160,000 price range, it can be well worth it.

There are some things to understand about how the bidding works, and you need to know how to keep on top of the latest listings. A company called Southwest Alliance contracts with HUD to market HUD homes. All bids must be placed through a real estate agent registered with Southwest Alliance to bid on HUD homes (such as Vallure Realty).

The following links will give you access to everything you need to know to purchase a HUD home, as well as a current list of homes for sale:

Click here to find out what listings are available for all of Texas: www.southwestalliance.com
Then click on "View Property Listings" and select Texas from the drop-down menu.

To learn more about how the bidding works visit: How the Government Home Buying Process Works

For more detailed information, see the Southwest Alliance Guidebook for Real Estate Professionals. It's a 19 page booklet intended to educate brokers about all that's involved in the process, including bidding, paperwork needed, and closing the transaction. This is especially useful for investors who may be buying multiple properties and like being more in control.

I highly recommend getting familiar with the HUD and Southwest Alliance websites, because you will need these websites to assist in finding homes to bid on. If you need more information or you think you might be interested in bidding, give me a call and I will be more than happy to help you.

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