www.REIClub.com – HUD Homes Are A Great Resource For Finding Below Market Real Estate. Here’s A Quick Explanation On Investing in HUD Properties… Hi, this isFrank Chen with REIClub.com, the only site you need as a real estate investor. Today I’ve got a quick video on investing in HUD homes. What are HUD homes? US Department of Housing and Urban Development A HUD home is a 1-to-4 unit residential property acquired by HUD as a result of a foreclosure action on an FHA-insured mortgage. HUD becomes the property owner and offers it for sale to recover the loss on the foreclosure claim. HUD offers these properties for sale to both owner-occupants and investors – HUD homes are usually appraised, then priced at fair market value. – List Price usually accounts for needed repairs – Usually sold “As-Is” – Bidding process – highest net accepted – Special purchase programs for teachers and law enforcement Where can you find HUD Properties? – Hud.gov – hud home store – daily listings and monthly auctions – general public – agents – mortgage agencies – non-profit organizations – MLS – Search HUD properties HUD Home Qualifications – Almost everyone – Cash buyers – majority – Be able to qualify for loan – Private lender or Transactional funding in place – Financing – Hud does not cover financing – Earnest money – deposit towards purchase price – secures bid and contract – ~$500 – Accepted – escrow – closing – Declined – returned – Failure to fulfill – forfeited – Inspections – Yes and …

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