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Buying A HUD Property in New Hampshire

By Tabitha Naylor

Housing and Urban Development, more generally known as HUD, can allow you to find a good deal, but it can be a little bit more complicated than buying a privately-owned property. You will be dealing with more people than you would on any other sale transaction, and you will want to prepare yourself for how different the process is.

Looking for a HUD Home

Homes are listed on the site. New listings are released every week on Friday morning, and during the first ten days, owner-occupied bids are submitted simultaneously. By the end of the 10th day, all bids are reviewed and the winning bids are posted at around midday.

After the 10th day has passed, if the home has not received any bids, HUD opens up the bidding to everyone. They are posted about a day later and reviewed at the end of the week. With this process, you always need to make sure that you keep on top of the properties that are being put on the site, so that if you find the ideal for one, you can start bidding on it straight away.

Make Sure That You're Ready

Unlike a typical buy-sell transaction, in which you have a little time to get your papers in order before you send them off to the seller, when you win a bid with the HUD you are under a very strict timeline. You usually have a little less than two days before you send all your documents and if you do not send them on time, your bid will get cancelled and you will not get the house.

Remember that, unlike other property sales, buying HUD homes is basically an auction. There are different ways to bid. There is a small timeframe for bidding on homes, as well. You can get your real estate agent to bid for you, or you can do it yourself on the HUD website.

After You Submit Your Sales Contract

When you have submitted your signed sales contract within the 48 hour time period, you, or your real estate agent, will get a letter that lets you know that you have 45 days to close. You will then have a closing agent assigned to you. This agent works with your broker to make sure that you have all the required documents so that you are able to close on time. Choosing your own closing agent has its benefits, namely that you probably already have a working relationship with them. but it also has its drawbacks. If you choose your own closing agent, it will be your responsibility to pay all closing cost fees. If, however, your real estate agent chooses to use a recommended closing agent, they will pay the closer's fees.

Do Your Homework Beforehand/h3>

As always, remember to do your research before you buy any property. Make sure that you are ready once you choose a house to bid on and keep in mind that you have to follow through very quickly if you win a bid on a property. As with any bank or government owned property, HUD homes are sold as-is, meaning the buyer is responsible for any needed repairs or upgrades, and the home inspection only provides the buyer with knowledge of the home's condition, and not any leverage to renegotiate.

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