Foreclosed Springfield, MA HUD properties are properties that are repossessed when borrowers with FHA loans default. FHA pays the lenders the loan balance and transfers the title to HUD. HUD then offers the homes for sale through an Offer Period where HUD accepts the most favorable offer for the property. Offers must be made through Realtors. To find a list of available HUD properties in the Springfield area, you can check the HUD website or check with your Realtor. HUD will notify your Realtor if your offer is selected.
Purchasing HUD Homes
You must obtain your own financing or pay cash for HUD foreclosed properties. Traditional Fannie Mae or FHA financing can be used to purchase the HUD home. FHA 203(k) rehab loans are available if you need money for repairs. It is recommended that you obtain a home inspection on your HUD home so you know the condition of the home you are buying. HUD does not make home repairs so you must buy the property in an “as is” condition if you want it.
What You Should Know About Purchasing HUD Homes
- Homes must be purchased to be used as your primary residence.
- Investors can bid if there are no other primary residence buyers.
- You may qualify for an FHA mortgage. FHA mortgages require you to purchase FHA mortgage insurance.
- If you are planning on rehabbing the property, you may be able to obtain a FHA 203(k) rehab loan.
- There is no negotiating on the purchase price. Only full price offers will be accepted by HUD.
- You can ask HUD to pay your closing costs up to 3% of the purchase price if you include it in your written offer.
- A Realtor must present your offer on your behalf.
- HUD notifies your real estate agent within 48 hours if your bid has been accepted, and you must close the transaction within 30-60 days after acceptance.
- HUD pays the real estate broker’s commission up to 6% of the purchase price.
The great thing about buying Springfield HUD properties is you are getting a property at a bargain price with built in equity. Government HUD homes sell quickly so don’t hesitate if you locate one. Make an offer right away.
Other Springfield Opportunities
Besides HUD homes, there are opportunities right now to purchase bank foreclosure auction properties in Springfield. In fact, there are 115 sheriff auction properties available in the area, and 301 bank owned foreclosure properties. There are also 358 defaulted properties in some stage of pre-foreclosure. With such a large inventory of cheap homes to buy, now is a great time to look into purchasing foreclosure houses. Bank foreclosure auction homes and REO’s (bank owned) homes are also sold in an “as is” condition. Auction foreclosed homes have no warranties, and you cannot get title insurance. You are responsible for liens and evicting the former owner or tenants. When you purchase an REO, you can get title insurance, and the properties are vacant. Both properties are sold at below market prices.
There are a number of good opportunities for investors to purchase bargain homes in Springfield through government HUD foreclosures, foreclosure auctions, short sales and REO’s. With a large inventory, low interest rates and affordable prices, there is no excuse not to buy now.