Colorado HUD and Foreclosures.
HUD homes can be a great investment for potential home owners and real estate investors. Often times, the properties can be purchased at a significantly reduced market value.
As a potential HUD home buyer, remember the following:
- You must use the services of a HUD registered real estate broker.
- You must be pre-approved for a mortgage or show evidence of adequate cash reserves to purchase the home.
- Owner-occupied bidders receive the first priority to purchase HUD homes.
- HUD offers three types of properties: FHA insurable homes, FHA insurable homes with a repair escrow and homes that are not insurable with an FHA loan.
- You do not have to finance a HUD home with an FHA loan.
- HUD homes are sold "as-is".
- Before making a bid on a HUD home, you must provide your HUD registered Real Estate broker with the appropriate earnest money in the form of a cashiers check or money order.
- If the purchase price is $50,000 or less, the amount of the earnest money required is $500. If the purchase price is greater than $50,000, the amount is $1,000.
- Your earnest money check should be made payable to the Deparment of HUD and buyer's name.