HUD properties are available all over the United States and make great investments for anybody interested. These homes often get a bad rap for being in bad condition, but in all actuality, they are similar to other foreclosed homes that are available!
Just like anything else, some HUD properties are in good condition and some require a few repairs. It is simply a matter of how well the past owner cared for the home.
HUD Properties In A Nutshell
HUD properties are homes that had loans that were insured by the Department of Housing and Urban Development. When the owner fails to live up to the financial obligations that are expected, the bank then takes over the home and it becomes a HUD property. At this point, the Department of Housing and Urban Development is in charge of repaying the lender any money that they lost on the deal.
So as you can see, the Department of Housing and Urban Development sticks their neck on the line when they insure the loans on these homes; if the owner does not pay, they are stuck with owing money to the lender.
Investors are particularly fond of HUD properties because they are a great way to make them a quick profit. The way this works is quite simple. Since HUD properties can be bought at a great discount, investors will purchase as many as they can afford, as long as it makes sense. They will then fix these homes up just enough so that they can sell them back to the public.
The catch? They sell them for the market value. This means that their profit equals the difference between the market value cost and how much they bought the home. In many cases, this can be tens of thousands of dollars. By doing this on several houses a month, HUD property investors can make a lot of money.
HUD properties can be found all over the United States, and offer great benefits to interested parties that are willing to put in some work.