Everyone who wants to buy a house wants to get a good deal. This can often be accomplished by looking at homes that are owned by HUD. There are many HUD homes for sale in Georgia.

What is a HUD home?

• HUD homes are properties that were insured by the FHA (the Federal Housing Administration) and the owner was no longer able to make payments on the property (due to medical problems, job loss, or other factors).
• The lender can file a claim with the FHA for the balance due on the mortgage and then transfer the title to HUD.
• HUD homes are one to four unit residences and are found in almost every county in Georgia.

POINT ONE: To purchase a HUD home in Georgia, investors or owner-occupant buyers must work with a HUD-registered real estate agent. However, buyers can search HUD’s database of available homes by visiting their website. A HUD registered agent is required to bid in Georgia. Each home has a list price and an as-is price. The current price is the value shown by the FHA appraiser. List price is HUD’s asking price for the property. Sometimes these two prices are the same, but many times the house is listed for less than its current appraised value.

POINT TWO: In Georgia, a HUD registered agent will show you the property, help you make a good offer, and submit it through HUD’s online bidding system. Bidding is not done in the traditional Georgia contract, but rather in HUD’s electronic bidding system. The contract is a basic one page form, but how your offer is structured makes a big difference in whether or not it is accepted.

POINT THREE: All HUD homes are sold as-is in Georgia, but HUD recommends that buyers have an independent home inspection before purchasing any property. Most of the time, HUD will not make any repairs to the home, so consider the repairs required before making an offer. This way you can include these items in your sale price. Always get a home inspection!

POINT FOUR: Most HUD closings occur within 45-60 days of contract acceptance. HUD prioritizes owner-occupant buyers, however, there are many HUD homes that are also available to investor buyers.

POINT FIVE: For an owner-occupant buyer who is obtaining FHA financing, there is a special program available today (2009) that allows the buyer to put down only $100. Since “no down payment” mortgages are no longer available, putting down just $100 is the next best thing. There are also special programs for buyers who are teachers, firefighters, and police officers. Georgia buyers have many great options when buying a HUD home!

POINT SIX: Some properties may need to have work done to make them insurable for FHA financing, and HUD sometimes offers an escrow account to complete these repairs after closing. HUD typically provides a 15-25 page Property Condition Report to the buyer that describes the condition of the property as determined by an inspector hired by HUD’s third-party vendor in Atlanta (currently PEMCO).

The HUD home buying process is a very streamlined process that can be completed without much hassle. It is essential to work with an experienced Georgia HUD Registered Agent who understands how the process works and can meet the required deadlines.