Government foreclosures are great investments. If a borrower has an FHA loan and defaults on their mortgage, FHA will pay off the lender and transfer the ownership of the foreclosed homes back to HUD. Savannah, Georgia HUD foreclosed houses are good investments for first time buyers because they are sold at substantially discounted prices with low down payments. You may even be able to qualify for an FHA loan. You must purchase the property as your primary residence to qualify. Investors are only allowed to purchase HUD homes if there are no bids from buyers who intend to occupy the properties. Since HUD is not in the business of selling real estate, they are motivated to sell their foreclosure listings.
To find a list of Savannah government foreclosures, you can go the HUD website. Another way to locate government foreclosures is to contact a local Savannah Realtor that specializes in foreclosures. In order to make an offer on a HUD property, you must do so with a local Realtor.
What you Should be Aware of?
Here are some things you should be aware of when you purchase government foreclosure listings:
- Foreclosed HUD properties are sold way below market value
- You get a property with built in equity
- HUD properties can be purchased with low down payments
- You may be eligible for an FHA loan
- Properties are sold in an “as is” condition
- You can inspect the homes
- You will receive title insurance
Guidelines and Qualifications to Purchase Government Foreclosed Homes
The following are a highlight of guidelines and eligibility requirements in order to qualify to purchase a HUD property:
- Buyers must obtain their own financing or pay cash
- If you are obtaining an FHA mortgage to purchase your homes, you are required to purchase FHA mortgage insurance
- The property must be used as your primary residence. If no owner occupant buyers make a bid on the foreclosed homes, then HUD allows investors to make bids.
- Offers must be for full price
- HUD may agree to pay buyer’s closing costs up to 3% of the purchase price
- All offers must be made through Realtors
- HUD will notify your Realtor if your offer has been accepted within 48 hrs. Closings need to take place between 30-60 days after acceptance of your bid.
- HUD pays your Realtor’s commission up to 6% of the property sales price. Your agent needs to insert special language in the contract confirming that HUD will pay their commission.
With Savannah housing prices at such affordable prices, purchasing government foreclosed properties is a really smart investment. The properties give you a built in equity because they are sold at discount prices. Some need work so you should always have a property inspection first. Now is the best time to invest in Government foreclosed homes in the Savannah and surrounding areas while these bargains last.
