Utah homes are considered “HUD Homes” when they have been acquired by the U.S. Department of Housing and Urban Development as a result of foreclosure on an FHA insured mortgage. HUD becomes the owner of the homes and then lists them for sale in order to recover the loss on the foreclosures insurance claim.
Anyone who can qualify for a mortgage or has cash can buy a HUD home in Utah. Typically HUD homes are first offered to buyers who plan on being owner-occupants of the home. This is known as the priority period. If no offers are received on the home during this time, the properties become available to home buyers, including real estate investors.
Special programs exist in some areas, offering reduced pricing to certain individuals and families. Examples include officers, teachers, emergency personnel, and firefighters. Other qualified individuals may include Utah nonprofits and government employees. Contact us to learn more about these programs.
Hud homes are typically priced lower than standard property listings and may be significantly cheaper than other homes in their neighborhood. Some of the homes and condos listed by HUD may require repairs and significant investment to bring them up to date.
HUD usually takes into consideration the cost of fixing a home when pricing their properties. While hud does not pay for any repairs on the homes, often times they will agree to pay a portion of the buyers closing costs.
When purchasing a HUD home, it’s a good idea to get a home inspection from a licensed home inspector in Utah. Inspection costs run from $200 to $500 dollars.
Hud homes may include single-family homes, townhomes, and condominiums.
Interested buyers submit offers on a HUD home during the offer period. Following the offer period, all offers are reviewed and the highest bidder receives acceptance.
If a home remains unsold following the offer period, offers are then reviewed by HUD as soon as they are submitted.
The Hud Good Neighbor Next Door program provides significant discounts to qualified buyers on certain properties. Other discount programs include the Dollar Homes and Sales to Nonprofits programs.
When a HUD home in Utah becomes available for sale, it is typically listed on the Utah MLS system.