Buyer Resources - Foreclosures

Buying Your Home - Foreclosures

Do you have to buy HUD homes through a realty agent?
You can only purchase a U.S. Department of Housing and Urban Development property through a licensed real estate broker. HUD will pay the broker's commission up to 6 percent of the sales price.

Are foreclosures an option?
A foreclosure property is a home that has been repossessed by the lender because the owners failed to pay the mortgage. Thousands of homes end up in foreclosure every year. Economic conditions affect the number of foreclosures, too. Many people lose their homes due to job loss, credit problems or unexpected expenses.  It is wise to be cautious when considering a foreclosure. Many experts, in fact, we advise inexperienced buyers to hire an expert to take them through the process. It is important to have the house thoroughly inspected and to be sure that any liens, undisclosed mortgages or court judgments are cleared or at least disclosed.  OUR TEAM IS EXPERIENCED WITH FORECLOSURES.

What types of foreclosure are there?
Judicial foreclosure action is a proceeding in which a mortgagee, a trustee or another lien holder on property requests a court- supervised sale of the property to cover the unpaid balance of a delinquent debt.  This is the law in Florida.

How do you find government-repossessed homes?

The U.S. Department of Housing and Urban Development acquires properties from lenders who foreclose on mortgages insured by HUD. These properties are available for sale to both homeowner-occupants and investors. You can only purchase HUD-owned properties through a licensed real estate broker. HUD will pay the broker's commission up to 6 percent of the sales price. Down payments vary depending on whether the property is eligible for FHA insurance.  One caution. HUD homes are sold "as is," meaning limited repairs have been made made but no structural or mechanical warranties are implied. We have a mortgage lenders who offer a rehab program at market rates.  CONTACT US.

Where do I learn about HUD foreclosures?
One good source is their Web page http://www.hud.gov.


Noel and Paula David
Noel and Paula David
Broker Associates