Wilmington and Burgaw Area Real Estate News

HUD homes are owned by the Department of Housing and Urban Development (HUD). The Federal Government becomes the owner of these properties, when a FHA mortgage goes in default and the home owner is foreclosed on.

Many people may think of HUD homes as trashed houses in the inner city that need a lot of work and are not suited for owner occupants. Nothing can be farther from the truth. Between 40% and 50% of HUD homes are in the suburbs and were built less than 10 years ago. Most of them are in good condition and a home owner can move in without major repairs.

For frugal buyers HUD properties offer an excellent opportunity to get into a pretty home way below market value. In addition, buyers can take advantage of favorable financing terms underwritten by the US government.

Last August HUD selected new asset managers. These companies market and sell HUD properties for the government. In October the new firms took over from the previous managers and implemented 3 major changes set forth by HUD.

1. HUD created a new website www.HUDHomeStore.com for listing HUD homes nationwide. There you can search HUD houses by state, county, zip code, list price and other criteria.
2. Timelines for submitting HUD offers have changed in favor of owner occupants. All houses listed as insurable or insurable with a repair escrow are now exclusively available to owner occupants for 30 days. Only uninsured homes will be open to investors after a 5 day exclusive period.
3. The earnest money deposit required for homes above $100K is now 1% of the purchase price. For offers below $100K, you deposit $1,000. For homes less than $50K, you need to deposit $500 payable to HUD.

Read the HUD Home Buyers Guide

Due to this transition there were hardly any new HUD listings in October 2010. However, this has changed. Many new HUD homes hit the market last week, and HUD's listing brokers are marketing these houses aggressively.

If you would like to know more about HUD homes, visit my Contact page.

Tammy Barnes -(910)471-5579 - Realtor - Burgaw, NC Real Estate - Wilmington, NC Area

Search for homes and land in the Wilmington, NC, metro area, including Leland, Hampstead, Burgaw, Ogden, Castle Hayne, Carolina Beach, Kure Beach, and Wrightsville Beach. You will also find information on the buying and selling real estate process, including preparing your home for sale and qualifying for home loans.