HUD Home Info

Welcome To Eagle Realtors' HUD Home Info Page

To view our homes for sale please visit our HUD Home search page and search for a HUD home by area or price or click here to see a complete list of HUD homes in Houston area at this time.

• Thank you for taking the time to visit our web site.  We pride ourselves on offering the most up-to date services and information to homeowners and potential homeowners looking to purchase homes in the Houston area and more specifically HUD homes. .
   

• One of our specialties is the sale of HUD homes. Our founder Carl Bradley, has been involved with selling HUD homes since 1979 and has been involved in more than 6,000 HUD sales in the last 6 years. He is the "HUD Expert" on the sale of HUD homes in Texas.  He is always available to consult with any of our clients and our agents on any and all sales that we are involved in.
   

• We pride ourselves on giving personalized service with the latest technology available today.  We make sure that you have all of the information necessary to make an informed decision on purchasing or selling a home in the Houston Marketplace. To see one of our Marketing Reports that we can make available to you please click here or visit our Resource page for additional reports and information. 
   

• Please take a moment to review the information below so that you have a brief understanding of what a HUD home is and why they are such great deals in the marketplace. Why do Investors come from around the United States and overseas to purchase these homes. Because of their value. 
   

• What is a HUD home? 
  
  A HUD home is one that is owned by the Department of Housing and Urban Development.
   

• How does HUD acquire these homes?
  
  When an FHA Mortgage is placed on a home by a buyer the Department of Housing and Urban Development insures the loan to the mortgage company in case the borrower defaults.  If the homeowner does not make their payments then the mortgage company is forced to collect the debt by foreclosing on the home.  Prior to foreclosure every effort is made to help the previous owner sell the home, renegotiate the loan, and find some type of financial assistance and counseling at no cost to the homeowner.  If this is unsuccessful then the lender is forced to proceed with the foreclosure process.  This generally takes from 4-7 months from the time the homeowner stops making their monthly mortgage payment. In the case of a bankruptcy this time frame can be extended for several additional months.
  
  When the lender acquires the home thru Foreclosure or a Deed Back in Lieu of Foreclosure then the assign the title to the home to HUD for full payment of the mortgage and any back payments, holding cost, legal cost, preservation cost and all outstanding principal and interest due on the loan.  This Foreclosure procedure also acts to "Wipe Out" most other liens and attachments to the home such as 2nd mortgages, home improvement loans, Materialman's liens, and IRS tax liens if the required procedures are followed to the letter of the law.  This does not extinguish and back property taxes on the home. These are paid by HUD and when they sell the home all back taxes and assessments are paid up to date by HUD.
   

• How does HUD determine the price they will sell the home for?
  
  HUD uses the services of a licensed real estate appraiser that is approved and trained by HUD to do appraisals for them.  They tend to use other foreclosure homes and specifically HUD homes that have sold in the general area.  They discount the price of the home for estimated cost of repairs and also generally take a discount off the price for the fact that the home is being sold "As-IS' and on a very short time frame.  HUD's goal is to get the home sold as soon as possible and place the money back in the Treasury with the least delay possible.  In general these prices are well below the other homes on the market.  We often find that the HUD homes are selling for $10,000 to $30,000 below what other comparable homes are priced at in the same neighborhoods. 
   

• How do I make an offer to buy a HUD home?
  
  HUD uses the services of a company that they refer to as their Management on Marketing Contract. In Texas at the present time this is a company with an office in Austin by the name of Southwest Alliance of Asset Managers (SWA). This company can not have dealings with the public at all. They only deal with licensed approved Real Estate Brokers and agents that have been approved to sell the HUD homes such as Eagle, Realtors. You may not make an offer directly to them if you are buying a home. They require that you submit your offer through an approved agency or broker.  SWA uses a state of the art computer bidding service know as "BID Select™"  As your broker on the transaction your Eagle, Realtors associate will submit the bid on your behalf and will track the process and let you know the bid results as soon as possible.
   

• What about the condition of the home?
  
  All HUD homes are sold "As-IS".  Some are more "As-Is" than others.  More and more of the homes that become HUD homes are less than 5 years old and are in great shape except for a little wear and tear on the carpets and a light coat of paint.  Most yards need a general clean up and some refreshing of the plants and flower beds.  Most homeowners do the same thing when buying any resale home, and since you usually get a substantial discount on the price, most of our clients are thrilled with their HUD homes. In most cases HUD will supply us a copy of their inspection report and we will supply this to you usually when we look at the home.
   

• Do I have to be "Low Income" to buy a HUD home?
  
  No!  These homes are first offered to Owner Occupant purchasers, then they are offered to investors and second home buyers.  Even Bill Gates who is worth over 7 billion dollars could buy a HUD home. These homes range in price from in the $20,000 range to over $170,000.  They come in most neighborhoods in the Houston area that have homes in these price ranges.  We also have a few condominiums and Townhomes available from week to week, and even some multifamily homes, duplexes and Fourplexs available but very rarely.  You do need to be pre-qualified or pre-approved on your mortgage before you can participate in the bid process.
   

• Question: What is a "HUD Home"?
  Answer: When someone with a HUD insured mortgage can't meet the payments, the lender forecloses on the home; HUD pays the lender what is owed; and HUD takes ownership of the home. Then HUD sell it at market value as quickly as possible.

  Question: Who can buy a HUD home?
  Answer: Anyone! If you have the cash or can qualify for a mortgage, you can buy a HUD home.

  Question: Are HUD Homes meant for people with low incomes?
  Answer: HUD homes range in price, but most are affordable for low- and moderate-income Americans.

  Question: Is it true I can get a HUD Home for a dollar?
  Answer: No. HUD sells homes at market value - that means that the price is set based on the price of similar homes sold in the area.

  Question: If the HUD Home needs repairs, will HUD make them?
  Answer: HUD Homes are sold "as-is," without warranty. That means that HUD will not pay to correct any problems. But even if a HUD Home needs fixing up - and not all of them do - it can be a real bargain! For example, HUD's asking price on the home will reflect the fact that the buyer will have to invest money to make improvements. HUD might offer special incentives such as an allowance to upgrade the property, a moving expense allowance, or a bonus for closing the sale early. And keep in mind that on most sales, the buyer can request HUD to pay all or a portion of the financing and closing costs. Your real estate agent will have details.

  We encourage you to get the home professionally inspected after your bid has been acknowledged on the web site.

  Question: How do I buy a HUD home?
  Answer: Start by finding a HUD-certified real estate agent. Your real estate agent must submit your bid for you, either by telephone or internet.

  Normally, HUD Homes are sold in an "Offer Period." At the end of the Offer Period, all offers are opened and, basically, the highest bid is accepted. If the home isn't sold in the initial Offer Period, you can submit a bid any business day.

  Question: If my bid is accepted, then what happens?
  Answer: Your real estate agent will help you through the paperwork process. You'll be given a settlement date, normally within 30-60 days, where the transaction will occur. We have an excellent booklet to help you understand the settlement process: "Buying Your Home - Settlement Costs and Helpful Information."

  When you buy a HUD Home, the selling agent's commissions are usually paid by HUD. HUD will pay a sales commission of up to 5%.

  Question: How can I get a loan to buy a HUD Home?
  Answer: HUD doesn't make loans directly. But they do have a number of mortgage insurance programs that could help you buy a home. You can read about those programs here. Then contact a HUD approved lender, who will take you through the steps and actually make the loan.

  Question: Can I buy a HUD Home as an investment?
  Answer: Most HUD Homes are initially offered on a priority basis to owner occupant purchasers (people who are buying the home as their primary residence). Following the priority period, unsold properties are then available to all buyers, including investors.

  Question: Is there anything else I should know about HUD Homes?
  Answer: We encourage every homebuyer and homeowner to be a wise consumer, so be sure to read HUD's Consumer Information. Houses built before 1977 may have lead based paint, which can cause harm to your family; so be sure to read about this hazard and about what you would need to do to correct it.
  
  Please look at our Getting Started page, so that you will be familiar with what processes are involved when purchasing a home in the Houston area either a new home, resale or a government owned home.