Bidding on HUD Homes Foreclosures

Preparing Yourself for Bidding on HUD Foreclosures

HUD Foreclosures Homes in Tucson AZ Housing Home HUD House Tucson Arizona Properties

HUD Foreclosures Homes in Tucson AZ Housing
Home HUD House Tucson Arizona Properties

HUD Foreclosures Homes in Tucson AZ Housing
Home HUD House Tucson Arizona Properties

When real estate owners default on HUD Foreclosure loans, HUD forecloses the properties and sells them to the general public at a public foreclosure auction. Finding and purchasing HUD foreclosures can help you save on your next house or real estate investment property, often well below market value.

If you are considering purchasing an Arizona HUD Foreclosure there are a few things that you should be aware of:

  1. Your realtor must be a registered Arizona HUD Bidder.  Your agent will submit the bid on your behalf to the HUD website.
  2. You are bidding on a property that is a Arizona Foreclosure and may be in distressed condition.  HUD will not make repairs to the property.
  3. Buyers should already have a pre-qualification letter prior to bidding on an Arizona HUD Foreclosure property.
  4. Investors may bid on an Arizona HUD property after it has been on the market for 30+ days with the exception of uninsured (UI) and uninsurable 203K Eligible (UK) properties which may require more than $5,000 in repairs.  Investors may bid on UI & UK properties after the 5th day on the Arizona market.
  5. The list price for the property has been established by an FHA appraiser. If you are obtaining FHA financing, you can be saving up to $500 because the appraisal has already been done.
  6. Offers exceeding Appraised Value – If an offer exceeds the FHA Appraised As-Is value and is being purchased with FHA Financing, the buyer will be responsible for the difference in cash.
  7. Properties with septic systems will have a septic inspection done.
  8. Buyers may elect to have HUD pay up to 3% of their closing costs.  Please make sure you advise your realtor if you need any closing costs covered by HUD.  PLEASE NOTE – IF YOU DO NOT NEED ANY CLOSING ASSISTANCE FROM HUD DO NOT ASK FOR IT!  MANY BIDS HAVE BEEN LOST BECAUSE THE BEST NET OFFER TO HUD IS USUALLY THE SUCCESSFUL BIDDER!
  9. Electronic bids are sent to HUD and sent to a third party after the bidding period is closed. HUD does not open or review any bids.  The third party reviews all bids after the initial bidding period and selects the best offer for HUD.  The successful realtor is notified via e-mail of their client’s successful bid.
  10. HUD purchase contracts must be filled out in BLUE INK – no electronic signatures.  Earnest funds along with pre-qualification letter or proof of funds (if paying cash) are submitted with the purchase contract.
  11. Earnest money deposits for HUD homes are $500 for homes valued up to $50,000 and $1,000 for homes valued over $50,000.
  12. The successful bidder is responsible for turning on all utilities in order to perform their inspections.  Should the inspection not be satisfactory, owner occupant bidders may request earnest funds be reimbursed.  Inspection period from acceptance of contract is 14 days.

MyOwnArizona provides clients with the listings and resources required to find and purchase AZ HUD foreclosures properties, whether you’re new to HUD foreclosures or an experienced bank home investor. We are licensed Arizona HUD Bidders. Working with a HUD-approved broker is required.

Please feel free to contact us and we can provide you with additional Arizona HUD information to guide you through the HUD Home buying process in AZ. We look forward to hearing from you and working with you soon!

Our best,
Patty Helmig and Carl Pepper, Realtors®
Tucson: (520) 822-6575
Phoenix: (480) 382-9191

Featured HUD Home Listing: 11767 Copper Creek Drive Oro Valley, AZ 85737

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