How to buy HUD Foreclosures and flip them for profit.
HUD foreclosed properties are available in most areas of the country. The Department of Housing and Urban Development (HUD) is a parent organization to the Federal Housing Administration or (FHA). The sales process is quite a bit different from county/city foreclosures or even purchasing a house from a home owner. This organization provides federal mortgage insurance to lenders, mostly for low to middle income borrowers. Lenders that foreclose on a home previously insured by the FHA, can file a claim for the remaining balance. Once the FHA refunds the lender the ownership will be transferred to HUD. HUD in turn auctions the home on the open market. Contrary to what many believe, investors are given the opportunity to bid on properties that are not purchased by potential owner occupants. Typically after the initial ten day period, investor’s bids are accepted. This is a good thing for house flippers, given that many home owners are not looking for a property that will require major repairs. You can even find multi-unit properties for sale on occasion. Other programs exist for non-profits, teachers, police officers, hurricane Katrina evacuees, firefighters, emergency medical technicians and other public service entities.
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