The United States Department of Housing and Urban Development (HUD) is a major seller of real estate in Iowa. HUD is not really in the real estate business. Rather, the Federal Housing Administration, part of HUD, insures thousands of mortgages each year in the state of Iowa. When the home owner of a property with one of these mortgages goes into default, the lender can foreclose. HUD then participates and buys these properties so it can try to recoup the losses sustained by the default.
Those seeking to buy a home in Iowa can then place a bid to buy these Iowa HUD homes. To buy HUD homes in Iowa, a buyer must first find the homes for sale. They then find homes they want to buy and place a bid through an Iowa real estate broker/agent approved by HUD Iowa. When the department accepts the bid, the bidder pays off that amount to buy a HUD home in Iowa.
Step 1:
Access the Iowa HUD home search by visiting hudhomestore.com/HudHome/Index.aspx. In the map on that home page, select Iowa to find all Iowa HUD homes throughout the entire state. However, you can easily refine your search from the first page of the results. Use the refinement options (price, number of bedrooms, city, etc.) to find exactly what you are looking to buy.
Step 2:
Note that you may not be eligible to bid on a buy all HUD homes in Iowa. If you are buying for investment purposes, then you need to select “Investor” as the buyer type to limit the search to HUD homes for sales that are available to investors. All other properties are listed for sale to owner occupants.
Step 3:
Once you have completed your search, make a list of HUD Iowa homes that you would like to bid on and purchase. Include the address and listing number so you can give that to your agent later.
Step 4:
Get a real estate agent or broker that is approved by HUD to place bids on Iowa properties. Most, but not all, brokers are approved by HUD for this purpose. However, it is very easy to find one of these Iowa real estate brokers by using the “Find a Broker” feature on the HUD website. From the home page (see web address above), click on “Find a Broker” to access a search engine for finding a broker that can place bids on Iowa HUD foreclosures for sale.
Step 5:
Decide with the agent which home or homes you would like to purchase. The agent can then do all of the paperwork and place HUD home bids on your behalf.
Note: In some cases, you will probably need financing to have your bid accepted by HUD. You can speak to an Iowa mortgage lender (such as a bank) to see if you can get preapproved for a loan to purchase an Iowa HUD home. This would then become part of your bidding package and offer.
Step 6:
Get the Colorado agent to complete the paperwork if you get approved by HUD Iowa. Make sure you have sufficient money for a down payment and other expenses. Speak to your lender to complete that paperwork if your bid is approved. A closing agent will do the final closing on the HUD property.
Step 7:
To wrap up the purchase of your new Iowa HUD home, you need to ask HUD for a deed. An Iowa property deed must be filed in the recording office in the county where you purchase a HUD home in Iowa.
Sources:
HUD Home Listings
