Who Can Purchase HUD Foreclosure Properties?
Anybody who has cash, good credit standing and qualifies for a loan can purchase HUD repo homes. However, you should be aware that you do not have the first choice of bidding on any HUD property. Owner-occupants are usually favored by the Department of Housing and Urban Development (HUD) to acquire the foreclosed property rather than investors. In case the owner-occupant failed to win the bid, HUD will then allow investors to make their offer. Keep in mind that HUD foreclosures are sold on as-is condition, and without any warranty. HUD will not fix nor do some repair on the properties. However, the agency would try to reflect the cost that the potential homebuyer would incur once he made some repairs and improvements on the asking price for the property. In some cases, HUD may offer incentives, such as early closing sale bonus or allowances to improve or upgrade the foreclosed houses.
