A HUD home is a foreclosure that is owned by the Federal government. The original owner had a mortgage that was insured by the FHA (Federal Housing Administration). When the owner didn't make the payments, the lender foreclosed on the home and the FHA paid off the lender.
HUD (the United States Department of Housing and Urban Development) then takes ownership of the home and sells it. HUD's goal is to sell the home as quickly as possible at a fair market value.
Prices of HUD homes are usually quite reasonable. HUD homes are appraised and priced according to their current "as-is" condition. Usually a HUD home will need to have some work done. Look carefully at the condition of the home. If you're willing to do the work, or can afford to have it done, a HUD home can be a real bargain.
Law enforcement officers, firefighters, emergency medical technicians, and teachers (pre-Kindergarten through 12th grade) are all eligible for a 50% discount on the list price of a HUD home.
To qualify, you must buy a home in a Revitalization Area. Revitalization Areas are neighborhoods that already have strong commitments from their local governments and need economic and community development. These neighborhoods are designated by HUD.
In addition, the home must be your sole residence and you must agree to live in the home for 36 months.
Contact us for more information on the Good Neighbor Next Door program.
HUD homes are sold at auction. HUD homes are first offered to buyers who plan to occupy the home. If a home doesn't sell, the bidding on that home is also opened to others such as investors.
You must place your bid for a HUD home through a real estate broker who is registered with HUD. Keller Williams Preferred Realty and Dave are registered HUD brokers and are authorized to represent buyers of HUD homes and submit bids on HUD homes. As a registered HUD broker, Dave can help you buy any HUD home in Colorado.
In most cases, all Realtor fees are paid by HUD and Dave's services are completely free to you. You'll be told in advance about any exceptions and how to avoid paying any fees.
HUD frequently changes its programs and qualifications. Contact us for the latest information and to get started.
HUD homes are only listed on their own special site. Use this link for searches:
You can also use this link to search for HUD homes anywhere in Colorado.
Whether you're searching in Metro Denver or throughout Colorado, when you see a HUD home you're interested in, let us know right away so we can get your bid submitted.