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How To Buy A HUD


A HUD home is a residential property acquired by HUD as a result of a foreclosure action on an
FHA-insured mortgage. HUD becomes the property owner and offers it for sale to recover the loss on
the foreclosure claim.

Once a HUD home is available for sale, it can be found at
www.sageacq.com or
under one of the following listing periods:

- During this period, the property is only available for government agencies and nonprofit
organizations to place a bid.  Click
here for more information regarding these purchases.

Exclusive - During this period, the property is available for owner-occupant bidders, as well as
government agencies and nonprofit organizations.

Extended - During this period, the property is available for all bidders, including investors.

All bids must be submitted by a HUD registered real estate broker. Please
contact us if you are
interested in placing a bid on a HUD property.

Information needed to place a bid:

Be prepared to provide your real estate broker with the following information to place a bid:

1.  A copy of your driver's license to confirm your identity
2.  Your current address
3.  Your phone number
4.  Your social security number
5.  Offer amount
6.  Type of financing, i.e. Conventional, FHA, VA, Cash, etc.
7.  Amount, if any, you would like HUD to pay toward your closing costs (up to 3% of purchase price)

8.  Email address to use Docusign for e-signatures

9.  Name of Title Company you want to use for closing

What you will need if your bid is accepted:

Once your bid is accepted, your contract package has to be received by HUD's Asset Manager, Sage Acquistions, within 2 business days. HUD recently implemented the use of Docusign to accept digital signatures in an effort to maximize efficiency throughout the HUD buying process.  If you would like to use Docusign to sign your contract documents digitally, you will receive an email with instructions on how to do so.  If you prefer to sign in person, your real estate broker will provide the documents to sign and express mail the package for you.  Click here to review a typical contract package. You will need to include the following items with the package:

1. A pre-approval letter from your lender, or a proof of funds letter if you are paying cash.  Your pre-approval letter must include the following information:

  • Must be on bank letterhead

  • Date (within the last 30 days)

  • Name of the borrower / buyer

  • The letter must say "credit has been reviewed" (financed purchases only)

  • Specify the type of loan, i.e. FHA, VA, Conventional (financed purchases only)

  • The amount for which you are pre-approved (financed purchases only)

  • The letter must state you have the funds to close (cash purchases only)

  • Must be signed by a representative of the lender

2.  Earnest money in certified funds payable to HUD. $500 earnest money is required for all properties with a purchase price of $50,000 or less. $1000 earnest money is required for properties with a purchase price of $50,001 or more.

After your package is submitted, it will be reviewed and signed by Sage Acquisitions. This is when
the offer is officially accepted. At this point, you will have 15 days to complete a home inspection. There
may be a re-winterization fee if you choose to have an inspection (actual fee varies).  All utility activation and inspection charges will be at your expense.

Empire Real Estate is a HUD listing broker; therefore, very knowledgeable about HUD properties.  Please
contact us for additional information or questions regarding the HUD bidding process.  We offer free training sessions to buyers and real estate professionals.





Shanna Gentry
Broker / Owner
Licensed in IN & KY
Phone: (812) 907-0277
Email: shanna@empirehomes4sale.com

Pam Constance
Licensed in IN
Phone: (859) 652-5986
Email: pam@empirehomes4sale.com

Get Pre-Qualified

It is important to get pre-qualified for a mortgage before searching for any home.  Be prepared to make an offer when you find that dream home, and let the seller know that you are serious about buying.  You may use the lender of your choice, but if you are looking for a referral, click the banner below to contact a mortgage professional .  Get pre-qualified today!


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