The Housing and Urban Development’s (HUD) mission is to increase home ownership, support community development, and increase access to affordable housing free from discrimination. Many of you have probably heard about Denver HUD homes but don’t really know where they are or how you can qualify for one. There are HUD homes across the Unites States. These are homes that have been acquired by HUD as a result of a foreclosure on an FHA –insured (Federal Housing Authority) mortgage.
Denver HUD Home Purchase Process
HUD offers these homes for sale to the general public. As a general rule, The first 30 days of the listing are reserved for owner-occupant bids (someone who plans to live in the home as their principal residence for at least 1 year). Any bids received during the first 10 days of the listing will be looked at together, and the best highest net bid that is acceptable to HUD will win. If the home is still actively listed after the initial 10 days on the market, any subsequent owner occupant bids will be looked at daily. If the property is still available after 30 days, meaning that an acceptable offer was not received by HUD before the owner-occupant bidding deadline, the bidding gets opened up to investors and all offers will be evaluated daily until an acceptable offer is received and the house goes under contract.
HUD determines the bid winner based on the highest net to HUD (so offer price minus seller paid closing costs and commission for the buyer’s Realtor). All HUD homes are sold “as-is” and without warranty, so it is recommended that the purchaser obtain a home inspection once his/her offer has been accepted. All Denver HUD home bids must be submitted online by a Realtor registered with HUD. HUD will notify the Realtor with the winning bid by 2pm (mtn time) the day after the bid deadline.
Who qualifies to buy a Denver HUD Home?
Anyone who is eligible to obtain a loan to purchase real estate (or who can pay with cash) can purchase a HUD home. For any insurable Denver HUD home with Investors are not allowed to bid on a home until it has been on the market for at least 30 days. There will be some HUD properties that are uninsurable listings (where necessary repairs are estimated to be in excess of $5000), and investors are allowed to bid on these Denver HUD homes on day 6 of the listing.
Finding Denver HUD Homes
Interested in checking out some homes? Give me a call and I’ll send you details of the HUD homes that are currently on the market! I am a HUD registered Realtor and can get you inside all of the HUD homes in the Denver metro area and can help you with your HUD home purchase!