How to Buy a FHA Foreclosure Property?

Buying an FHA foreclosure could be a huge opportunity for a real estate investor. When you buy a foreclosure, the savings can be substantial. Here are the basics of buying a foreclosed FHA home:

Finding a Home

The first thing that you have to do is find a broker to represent you in the transaction. The division that works with foreclosed homes is called HUD and they have a website that has a complete list of their foreclosed homes. Their list is updated every Wednesday. Typically, you will need to register two weeks in advance in order to place a bid because you will need a log on and password to make a bid.

Buying a Home

When a HUD home first goes on the market, they accept bids for a limited time. During that time, they take sealed bids from anyone that wants to bid on the house. At the end of the period, they open all the bids and take the highest bidder. If no bids are received during the bid period, they will open up the bids to investors or other private parties. HUD homes are sold as-is and the property will not have any repairs completed so it is important to get a home inspection.