How to Purchase Your Chicagoland Real Estate Through HUD

poplar grove real estateDid you know there are HUD homes available in many parts of Chicagoland? HUD homes come in many sizes, prices ranges, styles and locations. That’s because “HUD Homes” is another name for “FHA foreclosures.” And there’s a process for purchasing HUD homes that requires learning a new set of rules. Fortunately, it’s not hard to catch on.
The article “
4 Tips for Buying a HUD Home,”  written by real estate expert Ilyce Glink and posted on the
Equifax Personal Finance blog,  is a great place to start if you’re interested in an FHA foreclosure. Glink explains that bids for HUD homes are accepted online during an offer period. After the offer period closes, they are all opened at once. If the home isn’t sold during that time, potential buyers can make offers at any time, and their offers will be opened the day after submitted. The longer it takes to get a valid offer, the more HUD will start lowering the price.
To make an offer, you’ll have to have a real estate agent registered with HUD. Glink recommends searching through the HUD website to see which agents in your area have submitted the most winning bids. You’ll still need to interview them and choose one that will give you the attention you need, take you to see the property, and represent your interests well.
Another important tip is to have your financing arranged ahead of time as much as possible. Glink says that HUD is transitioning to a 30-day contract. If you win, you’ll have less than a month to get your financing finalized. You’ll need a prequalification letter to submit with the sales contract to be accepted, but Glink recommends that you go ahead and get together all your tax documents, pay stubs and account information so you’ll be ready to submit them to your lender quickly.
The
Equifax Personal Finance blog article has more tips, such as FHA deals you may be able to get for your financing, information on making an offer and earnest money (you can sometimes get it back if you cancel!), the link to the relevant HUD sites, and more.