$15,000 Home Secrets Revealed
A HOME FOR $15,000 IS NOT A DREAM
What do Jim Meyers, Daryl Sanford, Jason Denny, and Megan Amatrone have in common? They all bought foreclosed homes at an incredible discount through the Department of Housing and Urban Development (HUD).
Daryl bought his 3 bedroom home in the New York area (Syracuse) for $40,000. Its value has almost doubled now to $72,000. Jason and Megan got a discount of about 25% off the market value when they purchased their homes. And Jim bought his upstate property in NY for just $15,000. It’s estimated value now is around $107K.
According to John Adolfi of Adolfi Real Estate who knows the ins-and-outs of HUD homes having worked in this field for many years (he even wrote a book about it called the “HUD Home Buying Secrets”), when the bank-owned homes are foreclosed, the government takes them over and assigns them to HUD to market and resell the house. He says that because these houses are “misunderstood”, a lot of the times people either don’t know about them or are not interested in them thus driving their prices down. In addition to that, majority of real estate agents don’t get too excited about these homes because of pretty low commissions, as well as the amount of paperwork involved.
But as far as buyers are concerned, these homes can definitely be an awesome deal! According to Mr.Adolfi, it’s pretty common to expect to buy an HUD house for 10% to even 50% BMV (below market value). Another piece of great news? Unlike your standard foreclosed homes where homeowners have to compete with investors many of whom pay cold hard cash, owner-tenants get the first look on these! There is a video interview of Mr.Adolfi where he talks about his best tip on winning a bid, things to watch out for if you’re a buyer, as well as how to get those really amazing $10,000 – $15,000 steals. To buy an HUD home, you have to go to Hudhomestore.com and submit your bid(s).
INTERESTED IN BUYING AN HUD HOME?
HUD places the home on the market for sale in case a loan that’s insured by FHA (Federal Housing Administration) forecloses. If such a scenario occurs, the HUD contracts with different management companies in the U.S. to advertise and show the houses. People can easily view all available HUD houses because they are listed on the world wide web. To show and sell HUD houses, a real estate broker MUST be HUD-approved.
1. Since HUD does not provide mortgages, pay a visit to a lending institution or a mortgage broker to get a pre-approval on a mortgage. By going through a pre-approval process, you will be able to identify how much you are able to spend on a house.
2. Type www.hud.gov in your browser, select the state you reside in along with your search criteria, and hit the “Search” button.
3. Carefully research the list of HUD homes that interest you. Take a note of the unique property number for the home you are interested in taking a look at. This number can be found above the home’s picture.
4. Find a link toward the bottom of the listing called “Click here to find a HUD registered broker in your area.” Once you click on it, you should get a list of all brokers along with their phone numbers. Select a broker and of course write down their phone number.
5. Give the broker a call and ask him/her to show you the property. The broker will present your bid to HUD and walk you through the process in case you will decide to buy the house.
INFORMATION ABOUT DOLLAR HOMES
The U.S. Department of Housing and Urban Development has an initiative called the Dollar Homes. It helps local governments encourage different housing opportunities for families with low to moderate income levels. It also helps address certain needs in the community by giving people the opportunity to buy qualified HUD-owned houses for just $1!
What are Dollar Homes? They are single-family houses bought by the FHA due to a foreclosure.
If you’re interested in seeing available properties for HUD Special Programs such as Good Neighbor Next Door or Nonprofits, click on the link below now.
Click here to search for eligible properties in your city and state.