Buying HUD Homes in Miami: Excellent Offer Comes at Discounted Price!
If you are plotting to buy HUD homes in Miami, this is the right time to do so! There is a program for owner occupants that the down payment is only $100 with some restrictions as per HUD guidelines! Other than that, police officers, teachers, and firefighters also get the chance to buy a house at 50% discount in specific Miami real estate areas. Meanwhile, for real estate agents, the HUD offers huge incentives to sell all HUD homes in your inventory. Whew.
What are HUD homes really? HUD homes are FHA insured mortgage loans that go into foreclosure. HUD sells these homes in a weekly auction using HUD registered real estate agents. HUD homes have long been favorites among investors and potential homebuyers due to its low rates and low price. Generally investors will repair the homes and sell it to the public at market value.
Anyway, it is the right time to buy a HUD home in Miami, Florida. But before that, you need to know the steps for buying your dream house:
1) Find a HUD registered Miami real estate agent. To buy a HUD home you have to find a HUD registered real estate agent because the HUD uses its own contracts and many different forms, addendums and disclosures that usually only HUD registered agent are familiar with. Using an inexperienced agent may cost you thousands of dollars which you don’t want to, right?
2) Find the HUD home that you want. Search for HUD homes that are for sale on the listing. You need to know that all HUD homes are sold in as-is condition with no warranties. Although your Miami real estate agent will show the property, provide tax roll info and comparables of recent sales, you won’t be permitted to turn on any utilities in the house.
3) Bid for the house. To be able to bid for a house, you have to be pre-qualified and place an earnest money deposit. All offers are presented online and are awarded to the highest bidder -in the process the Miami real estate pro will help you with all the pertinent paperwork needed to bid-. But, sometimes HUD will pay up to 3% for closing costs if it is stated in the sales contract. If you are an owner occupant, you can only bid in the original offer period. After the offer period is over, the house will be opened for investors.
4) Win the bid! If you are the only bidder, automatically you will win -assuming your net to HUD is within the acceptable percentage. The Miami real estate agent will inform you if you are the winning bidder the day after the bid. Anyway, the HUD won’t publish their guidelines for the minimum price offers they will accept and all completed contracts and forms must be sent within 42 hours of acceptance, so while time is of the essence, it is best for you not to get too involved emotionally in such bid. Keep your head level and reckon about what you want to do with this property. This is vital especially if you want to make an investment out of it.
5) Get the money to pay. If you are a buyer, you have 45 days to close the deal. You may pay cash for the home or get a financing, either through FHA -who has many incentives for qualified buyers- or a conventional loan. Remember that HUD will cancel the contract after 45 days if you haven’t closed the deal for whatever reason. You may extend the contract but it costs $375 per 15 days for a house over $50,000, plus generally only one extension is allowed.
6) Close the deal. You as a buyer may choose a bank or mortgage company and title company to help you say HUD and yourself about the closing date with at least 3 days notice. You have to bring a cashier’s check to the closing as no personal checks are allowed. Remember that you are not allowed to make any repairs to the house before closing.
Although buying HUD homes in the Miami market seems to be complicated, you need not to worry as long as you have picked a trustworthy and professional HUD registered real estate agents who knows all the procedures and guidelines of the HUD homes process. Any incorrect steps or mistakes made in the contract, forms, and or deadline missed will cause your bid to be cancelled.
But, although it seems complicated, buying HUD homes in Miami is a excellent option, especially when it comes at a discounted price. So what’s to wait? Go online to search for HUD homes in the listings and start looking for a HUD registered property agent in your neighborhood. You can check in this site for monthly payment with our ‘FHA Mortgage Calculator‘ and the average interest rate in ‘FHA Rates‘ page. Excellent luck.
Read also: FHA Mortgage Refinance and FHA Refinance Loans
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