What is a HUD Home?
A HUD Home is a foreclosure that is owned by the government and offered for sale to the public. The home is vacant. The government has a huge inventory of these foreclosures and needs to sell them as quickly as possible.
Why does the US government own homes in Cherokee County?
Most buyers need a mortgage (home loan) to buy a home. To encourage home ownership and fair lending practices, the government established the Department of Housing and Urban Development (HUD). One of the biggest programs HUD uses is called an FHA loan. In an FHA loan, the borrower gets a mortgage from a bank (or mortgage company) as usual, but HUD guarantees that either the mortgage will be paid by the borrower or HUD will pay off the loan. Because HUD is backed by the US government, the banks feel safe that they will be paid. Because the banks feel safe, they will often offer lower interest rates and easier credit qualifications for FHA loans.
For example, if a borrower with a home in Cherokee County uses an FHA loan, then fails to pay their mortgage, HUD forecloses on their home. As a part of the foreclosure process, HUD pays off the bank and takes ownership of the home. HUD typically has no use for the home, so they offer it for sale to the public. The home becomes a HUD Home. Because HUD Homes are empty and typically not in peak selling condition, HUD often must sell them at below market rates. This represents an excellent opportunity for a smart and careful buyer.
Anyone can purchase a HUD home. It is the home (not the buyer) that qualifies a property as a HUD home. HUD homes available in the Atlanta market may vary widely in price, but most of the properties are financially accessible for buyers with low to mid range income.
Buyers that plan to live in the house as their primary residence will have priority over investors during the initial bid period. After the initial bid period, if the home does not sell, the HUD home becomes available to all buyers, including investors. The real estate agents at www.HudCherokee.com can assist all buyers and investors with any HUD home purchase in Cherokee County.
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