A large number of foreclosures in Boston that sell each year are HUD foreclosures. If you wish to buy a cheap home and do not mind buying one that might need some work, buying an HUD foreclosure home can be an attractive option.



HUD homes could have been foreclosed upon by various government agencies in lieu of unpaid taxes or fines. Also, when home owners who have FHA insured loans default on the mortgage payments, the Department of Housing and Urban Development acquires the house. The house then sells as an HUD foreclosure.

You should remember that buying an HUD foreclosure differs in procedure from buying a Bank foreclosure. Listed below are the basic guidelines involved in buying an HUD foreclosure home.

You will first need to find yourself a real estate agent that has been approved by the government to deal in HUD property. You must remember than the phone number that is generally displayed at the sign in front of HUD foreclosure homes is generally that of the listing agent. They work on the seller's behalf. While you might choose to let the listing agent work on your behalf too, it is advised that you pick your own agent (who would need to be HUD approved). Your agent's commission is paid by the Department of Housing and Urban Development if the agent mentions it in the agreement.

Your realtor can help you look for HUD foreclosure homes and you could also go through the internet to look for HUD foreclosures in Boston.

Once you have a list of HUD foreclosures, it is important to evaluate all the homes on the list. A property report would generally give you information about the property's condition. It is suggested though, that you do get the house inspected yourself too. For the homes that you see online, you can have your agent organize a viewing of the home. You should be very particular about your inspection, because bids once made cannot be retracted.

A letter of pre approval from a lender needs to be provided along with the bid. Also, a deposit in the form of a money order of certified check needs to be given to your realtor. If, for some reason, you are unable to go through with the deal later on, HUD keeps this deposit money.

Your bid needs to be submitted before the last date for it to be considered. All the bids are opened on the specified date and the home generally goes to the highest bidder. Home buyers intending to live in the home are given preference over investors bidding on the house.

If the winning bid is yours, you get notified through your agent and have a stipulated period of time to pay the remainder of the amount.

Since this could be a complicated process, do take professional help whenever you think you need some.