| The bank taking ownership of a home from an owner in default is called foreclosure. In Utah, this process can take seven or more months.
If financing for the property was insured by the Federal Housing Administration (FHA), FHA becomes the new property owner upon the completion of the foreclosure. The property is then made ready for resale through the department of Housing and Urban Development (HUD). HUD is a federal organization that promotes affordable home ownership and manages the resale of FHA foreclosure properties.
Here are the basics when purchasing a HUD foreclosure. HUD homes are listed on Fridays. During first 11 days, the home is available for inspection and sealed offers are accepted via electronic bid. Only a buyer desiring to occupy the home may place their bid during the first eleven days. All electronic bids must be placed through an authorized agent. Earnest money must be paid in cash or certified funds prior to placing the bid. One the morning of the 11 day (usually a Monday) all sealed bids are opened and highest acceptable bid wins. HUD looks at nothing but the bottom line. If no owner occupied bid is deemed acceptable, the home is made available to investors.
You should be pre-approved with financing prior to placing a bid. If you win the auction, you have 45 days to close the deal, or you have to purchase an extension. HUD assumes you have already spoke with a lender and you are pre approved prior to placing your bid.
I'm ready to answer any question you might have about any of these listings. Call or email now!
Gary Pryor
"Your Home is my Priority!"
Altius Realty
Email: priority@ListingUtah.com
801-221-9860
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