How to Buy Dallas HUD Homes in Foreclosure
Written by Lance Mohr   
Wednesday, 15 October 2008
Word Count: 548

When an FHA insured home goes into foreclosure, the U.S. Department of Housing and Urban Development or HUD offers it for sale in order to recover part of the cost of the house. A great deal of Dallas real estate is under-written by FHA so it should come as no surprise there are a significant number of HUD foreclosure homes available at any given time.

How to Find a HUD Dallas foreclosure

There are a variety of ways to find HUD homes in the Dallas area; you can work with an agent or broker that specializes in Dallas foreclosures or check the NHMS website at http://hud1.towerauction.net/FL.htm. All HUD homes are first offered to owner occupants to use as a primary residence and then later offered to investors if the home did not receive viable bids during the priority period. Because preference is given to owner-occupants, it can be an excellent program for Dallas First-Time homebuyers, those on limited incomes or others wishing to use the home as their primary residence. In fact, anyone can buy a HUD home even if you don’t currently reside in the state.

How to Submit a Bid on a HUD Home

Once you find a Dallas property of interest, take time to view the home inside and out. Homes are sold “as-is” and without any type of warranty or repairs so you want to get a good idea how what expenses might be involved before making a bid on the home. To submit a bid you will need to find a real estate broker registered with HUD to submit an offer on your behalf. Listed properties have a closing date by which all bids must be submitted and a suggested starting price. The suggested starting price is exactly that – suggested. HUD does allow offers for less than the original bid rate but keep in mind that the highest bidder “wins”. Desirable properties often receive more than the minimum starting bid – sometimes much more. On the other hand, offering a low-ball bid is one manner to gain a great deal of equity in a property.

What to After Your Offer is Accepted

If you are notified that you have the winning bid and your offer on the home is accepted then contact your agent to arrange proper inspections. Remember, Dallas HUD homes are sold “As-is” and while they make every effort to document the state of the property; many things can easily go un-noticed. Depending upon your individual situation, owner-occupied bidders may qualify for FHA loans or other special financing programs to help make the home even more affordable. Those purchasing a HUD home for investment purposes are responsible for arranging their own financing.

Special Programs

Some potential homebuyers may qualify for special programs or financing if any of the following apply: • You are an evacuee displaced by Hurricane Katrina, Rita or Wilma. • You are an Officer, Teacher, Firefighter, or EMT. • You are a low-income resident of Florida that qualifies for public housing.

Lance Mohr is a Realtor with Keller Williams Realty. His team specializes in Plano homes for sale and Frisco TX homes for sale. Please visit our Dallas real estate website.