The U.S. government’s Department of Housing and Urban Development (HUD) has been a great place for flippers and rental rehabbers to find deals. When a bank forecloses on an FHA-backed mortgage, they submit a claim to the Federal Housing Administration and turn the title over to HUD.
Just like a bank, HUD wants to sell the homes quickly. So they price the houses to sell. Since we are dealing with a government bureaucracy, HUD has a specific procedure to sell its homes:
- A HUD-approved broker gets the listing and advertises it just like they would with any other house.
- For the first 10 days the house is on the market, HUD only allows owner-occupants to bid on the house.
- After that initial period, investors can bid too.
- All bids have to go through a licensed HUD broker.
The HUD house website has more details about buying HUD homes. You can also find listings of HUD homes on…
JP Moses
is a real estate investor in Memphis, TN, with experience ranging from land lording to note buying, rehabbing, and wholesaling. However, wholesaling is the area that he enjoys most and where he bring the most experience and expertise to his students.