Property bargains in Lincoln, NE can be found in government foreclosures right now. There are some very good deals available on HUD foreclosed houses. To find a list of HUD government foreclosures in the Lincoln area, check out the HUD website. Also, ask your Realtor to help you locate HUD foreclosure homes in the local MLS also.
HUD foreclosed houses occur when the borrower defaults on their FHA loan, which is insured by FHA. FHA pays the lender the loan balance and acquires title to the home. HUD sells their foreclosed houses at a substantial discount. Many can be bought with low down payments. HUD homes are then offered for sale through Internet sites. You must make an offer through a Realtor. The prices are set based on the most recent property appraisal. There is an “Offer Period” during which HUD accepts the most favorable offer. If you are interested in making an offer on a HUD home, ask your Realtor to find out when the Offer Period expires. After the Offer Period expires, the successful buyer will be notified by HUD through their Realtor usually within 48 hrs.
Financing on HUD Foreclosed Homes
Buyers may obtain FHA financing or traditional financing on HUD foreclosed homes or pay cash. If you need to make repairs to the home, you may be eligible for an FHA 203(k) rehab loan. As is true in many foreclosed homes, some HUD foreclosed houses are in need of repairs, but there are many that are in move in or good condition. You will want to have a home inspection to determine if the home needs any repairs. Sometimes HUD provides a property report. All HUD homes are sold in an “as is” condition. HUD will not make repairs on their homes so you should budget for repairs.
Guidelines to Purchase HUD Foreclosed Houses
The following guidelines apply when you purchase HUD foreclosure listings:
- You must obtain your own financing.
- For an FHA mortgage, you are required to purchase FHA mortgage insurance.
- You may qualify for a FHA 203(k) rehabilitation loan.
- Purchases must be for a primary residence. If no one bids on the home, investors are then allowed to bid.
- The purchase price is firm, no negotiating. Only full price offers will be considered.
- HUD may pay your closing costs up to 3% of the purchase price.
- Offers must be presented through a licensed Realtor on your behalf.
- If your bid is chosen, HUD will notify your agent within a day or two after the expiration of the Offer Period. You have 30 -60 days in which to obtaining financing and close the transaction.
- HUD pays your Realtor’s commission up to 6% as long as your agent includes special language in the contract stating so.
For those buyers/investors that are fortunate enough to have their bids accepted by HUD, you receive a bargain property. If you find government foreclosures, it is smart to make an offer immediately. Now is a great time to buy foreclosure properties in the Lincoln, Nebraska and surrounding areas at discounted prices.
