The United States Housing and Urban Development Act, known as HUD, was enacted in 1965 to pave the way for more affordable home ownership for minority groups and first-time homebuyers.
Since the Federal Housing Authority (FHA) falls under the jurisdiction of HUD, the ongoing foreclosure crisis, which has included thousands of FHA insured homes now fall under HUD guidelines for sale and disposal of these properties.
Since some twenty to twenty five percent of all homes purchased in the U.S. have been financed through FHA insured loans, many of which are in default or foreclosure, there are plenty of these properties available for sale.
Investment strategies for the purchase of a HUD owned property should be based on whether the buyer intends to purchase the property as a primary residence or as an investment for rental purposes or resale.
It is important to understand that you, as a buyer, cannot propose an offer to buy a HUD property directly from the Agency, but must do so through a HUD-certified real estate agent.
The Hud-certified agent is a very important part of the buying process, since he/she will know the complexities of dealing with a government agency and can put in an offer specific to the buyer’s intentional use of the home. For example, a buyer who intends to live in the home is, under HUD regulations and guidelines, given certain advantages over an investor, which your agent is well equipped to explain to you.
Your agent will be an invaluable aid in guiding you through the maze of HUD imposed regulations, strict inspection time lines, and more. Although a HUD foreclosure can often be purchased at a very attractive below-market price, consideration should be given to the fact that in buying a HUD property in “As-is” condition the magnitude and overall cost of repairs involved in getting the property into shape should be a most important consideration.
As far as the agent is concerned, becoming a HUD- certified agent has been an excellent career-building opportunity for many. Certification can be obtained through the educational courses offered by the Certified Foreclosure Agent program through Foreclosure.com Agent University.
To further increase one’s chances of success in the buying and selling of foreclosures, agents and investors should complete readily available foreclosure classes and courses specifically designed for these kinds of investments.
Las Vegas Investors and real estate agents must learn to diversify their skills and expand their knowledge in order to successfully compete in an exceedingly tough market.
In particular, agents with HUD, REO and specialized foreclosure experience and training, will be the agents most sought after by clients pursuing these kinds of real estate investment opportunities.
If you are looking to purchase a HUD Home in Las Vegas, contact us at 702-376-0088. North American Realty of Nevada are the specialists you need to find that perfect home in Las Vegas, Henderson or Boulder City.