| Buying a foreclosure can be a great opportunity for | | | | best foot forward if you want to have your bid |
| the right buyer. There are important things you need to | | | | accepted, as you will have no idea what price or how |
| know before you decide to buy a foreclosure home in | | | | many others have bid. When a property is first listed |
| Austin and Central Texas. | | | | on the online HUD auction, there is usually a 7-day |
| What is a Foreclosure / HUD Home? | | | | period where the auction house will compile bids, and |
| Another name for a foreclosure home is "HUD Home" | | | | open them all on the 7th evening. If there where no |
| and it is defined as a residential property (1-4 units) that | | | | bids during the first 7-day period, it will become a daily |
| has been acquired by HUD after the home has been | | | | auction. |
| through foreclosure filings on an FHA-insured | | | | Bids submitted from buyers who intend to occupy the |
| mortgage. HUD will become the property owner and | | | | property have a higher precedence than those from |
| attempt to recoup the mortgage writer's loss (FHA) | | | | investors; in other words, if an investor makes and |
| after the formal foreclosure proceedings. | | | | offer to buy an Austin foreclosure and an |
| Where can I go to search foreclosures? | | | | owner-occupied buyer also makes an offer on the |
| One of the most popular places to search for | | | | same property, the owner-occupied offer will win even |
| foreclosures is RealtyTrac. They offer in-depth | | | | if the offering price was lower. This is because the |
| information such as liens, pre-foreclosure and REO | | | | government is aware that someone will more likely |
| property searches. However, you will need to | | | | stop paying on an investment property than their |
| subscribe and pay a hefty fee for access to their | | | | primary residence. Don't think that you can just "say" |
| information. | | | | that you're going to be owner-occupied and gain an |
| An alternative to this is to spend some time looking | | | | advantage -- I have known HUD to randomly |
| through local REALTOR websites in your area on | | | | "check-in" on sold properties by sending someone out |
| search engines. There's a great chance that an agent | | | | to ensure that they are in fact owner-occupied. |
| in your area offers access to searching local | | | | Another important difference in buying a HUD home |
| foreclosures for free. I offer a free foreclosure search | | | | vs. a non-HUD home is that there is no option period, |
| tool on my site that allows you to search foreclosures | | | | and all foreclosed homes are sold as-is. HUD will give |
| by map, by zip code, by school district, by address and | | | | you an opportunity to perform an inspection, however |
| more in the Austin and Central Texas area. | | | | they will not make any repairs to any foreclosed home |
| You've searched Austin Foreclosures and want to | | | | they sell. If you are not in the Austin or Central Texas |
| submit an offer. Now what? | | | | area, be sure to check with your local REALTOR to |
| If you are in the Austin and Central Texas area, you | | | | see if the same guidelines apply. |
| will need to work with a HUD-registered REALTOR | | | | Is buying a foreclosure right for you? |
| who is approved to transact HUD Homes and has | | | | As you can see, the process for buying a HUD home |
| experience with the HUD purchasing process -- you | | | | is quite different than buying a resale home in Austin |
| cannot submit a bid or view the inside of any | | | | and Central Texas. The buyer of a HUD home has to |
| foreclosure properties without a HUD-registered agent. | | | | be willing to place a firm offer up front on the home, |
| This may be true in other cities and states, as well. | | | | and be willing to have that offer accepted and |
| HUD properties require a special HUD Key for front | | | | purchase the property as-is. It is best to find an agent |
| door access. | | | | who is familiar with the HUD process & can |
| In Central Texas, foreclosures are purchased through | | | | effectively value the subject property and offer |
| a blind online auction process. You will have to put your | | | | quantitative assistance on how much to bid. |