HUD homes can be a good option if you’re looking to buy a house but save a little money as well. When buying a home, a homeowner may opt for a HUD insured mortgage. If that homeowner is then unable to keep up payments on that mortgage and the home goes into foreclosure, HUD will pay the lender foreclosing on the home whatever amount is owed on the home. This basically means that HUD takes possession of the home and is free to do whatever it likes with it from there. Wanting to sell of the house as quickly as possible, HUD will relist the house at market value, offering the buyer a house at significant savings. The only inherent problem is that the home is sold “as is”. Sometimes that means having to spend a little extra money on repairs or renovations but it can be worth it for the money you save initially. Oftentimes, the cost of the house and the cost of repairs adds up to less than you would’ve paid for the house under other circumstances.
- Guest answered 3 years ago