FHA HUD Sales deal with The United States Department of Housing and Urban Development (HUD) homes. Usually, they are homes that were once financed with FHA loans, but the owner can no longer keep up with the payments and the property is now foreclosed. For this type of escrow account, you need professionals who’ve handled escrow of FHA HUD homes for nearly 40 years. Golden State Escrow makes sure the process is as efficient as possible.
HUD Homes and Their Benefits
Because once FHA-Insured homes have gone in foreclosure, HUD wants to sell them quickly to recoup the costs lost on the loan. This means that they’re typically sold at prices lower than market value. Another great thing is that home buyers have priority over investors. Though it’s only 30 days, home buyers who will make the resident their primary have can make bids before investors.
HUD also helps with closing costs, and there’s often a lower down payment.
Things to Consider When Buying a HUD Home
There are restrictions on selling a HUD home. Typically, you must live in the home for 1 year, and you are not able to purchase another HUD home for 2 years after the purchase of the first. Another thing to consider is that the home is sold in its current condition. HUD will not offer to do any work on the home. Lastly, you must use a HUD-Approved Agent. These agents are those who have registered with HUD. Whether you’re a buyer or seller of a HUD home, you need a company that you can trust. Golden State Escrow is that company. We’ll take care of all escrow aspects.