Individuals looking for inexpensive house deals in Delaware may wish to explore the option of buying Delaware HUD homes. HUD (the Department of Housing and Urban Development) sells homes that it purchased at foreclosure auctions after the homes were foreclosed due to loan default. HUD buys these homes because its Federal Housing Administration insures the loan, which means HUD is going to take a big loss unless it can sell the house after buying it in the foreclosure process.
Buying HUD homes in Delaware requires the prospective buyer to place a bid through an agent. HUD officials in Delaware then decide whether to accept the bid. If it is accepted, the buyer purchases a Delaware HUD home by paying the bid price.
Step 1:
Look for Delaware HUD home listings online. Recently, HUD made this an easy process by consolidating nationwide HUD properties into one website. Visit this website at hudhomestore.com/HudHome/Index.aspx. Choose Delaware in the map to find HUD homes in Delaware. You can then view all HUD Delaware homes by using the page numbers.
However, it is better to refine your search to get the type of home you are hoping to buy. For example, assuming you have a limited budget and want to purchase a Delaware HUD foreclosure for less than $90,000, you can put that as the maximum price in the price range (keep the minimum at 0).
You should also narrow the search based on your reason for buying a HUD property. Many investors love to look for cheap homes through Delaware HUD sales. However, only certain listings are open to investors, as many homes are available only to owner occupants. You can choose this option under the “buyer type” menu.
Step 2:
Look through the HUD homes in Delaware to determine which ones you would like to buy. It is also wise to go ahead and visit the properties to see what kind of shape they and the neighborhood are in.
Step 3:
Try to arrange financing if you do not have the money in the bank to purchase a Delaware HUD property. Lenders may give you preapproval for a home loan if you meet certain requirements. Getting this preapproval may be crucial to getting your home bid accepted by HUD Delaware. Thus, you need to do this before placing bids to buy HUD homes in Delaware.
Step 4:
After getting preapproval for any necessary loan, then you need to find a Delaware real estate agent or broker to assist you in buying a HUD home. As in all HUD purchases, you need to use a broker or agent to submit the paperwork and place a bid for you (you may not do it by yourself). Show the loan documents and other necessary papers to the agent. He or she will then put together a bid package and place the bid.
Step 5:
Wait to see if HUD officials accept your bid for the Delaware HUD home. Get the broker and closing agent to finish up the transaction if it is approved. In the meantime, you will have to go back to your Delaware lender to complete the loan transaction if that applies to your case.
Step 6:
You are now the owner of a previous HUD home in Delaware. But this is not the final thing you should do. You also need to get a property deed for evidence of your purchase of the HUD property. Get this from HUD and also file it as soon as possible in the recording office of the Delaware county of the property.
Sources:
HUD Home Listings
