Everyone wants a deal now days.  We have foreclosures, short sales and Bank Owned properties.    One of the most often overlooked, but probably the next wave of great deals is the HUD homes.

So just what is a HUD Home??  Some folks say they are foreclosures.  Apparently the government doesn't like that word foreclosure.  HUD homes were at one time foreclosures, but they are now government owned homes.

So what happens is this....a home is foreclosed on by a bank.  That home has a federally insured mortgage and now the bank has the option of giving that home to the government.  So in a lot of cases the banks do this and the home becomes a HUD home.

HUD's are advertised on the MLS, but it requires a very different process and different paperwork.  Only a handful of Realtors in the Tucson area know how to show, contract and bid HUD homes.  So if you are interested, give me a call...I am one of those handful of Realtors that know HUD.

The process for HUD homes is very different.  New homes are listed every Friday and are open for BID for 10 days to owner/occupants only (no investors).  Then bids are opened on a Monday AM and if no successful bids are received then investors and owner occupants are allowed to bid on a daily basis.  Since bids are opened on a daily basis, the MLS may or may not be correct on what is currently still available. 

If you are interested in bidding on a HUD home, you r Realtor will complete a special contract, get a certified check for the earnest money and place the bid through his/her authorized Broker.  If the bid is accepted, then the Realtor must overnight the contract and funds to HUD.  There is an inspection period and other hoops that have to be jumped through.  However, there is some great financing deals (such as $100 down and get $1000 dollars back from HUD at closing!!) right now.

Watch in the next few days, I will be adding some special webpages and videos to talk about HUD!!!