How to buy HUD home?

[winner]

Hi there,
I am interested in buying a real estate as an ivestment and I heard something about HUD homes for sale. We watched a program apparently you can buy a place under $10,000. Is it for real? Does someone knows or have any infromation how it works.

[Laurie in Bradenton]

I have worked on many HUD homes and you can find them for good prices. BUT! Many have a great deal of damage. You'll be required to make alot of repairs. Thats why the low prices. You'll make up the difference in roofs, plumbing, a/c replacement. The US governement has minuimn stardards for homes it will loan money on. You'll have to bring the house up to these marks within a certain time. The same goes for banks that will loan on property. Your first step should be to locate the HUD realestate rep in your area. Usually its one or two different companies. Then get their list of current properties for sale. Go and look at them. And not just a drive by but a get out and walk throught each room.
I've worked in places where all the plumbing was pulled out and sold for the copper. All the wiring was gone too. Place where DEA had been in to bust up a pot growing room. Here all the walls in the home had been busted up in order to do the growing. There were piles of dirt all over where the plants had been removed and everything just left. The DEA is NOT required to clean up after themselves. That could end up being your job. My first task with these homes is to secure them. Board up windows, change locks, place tarps over missing roof sections. Then make up a list of all the issuse with prices. Then the house sits til it either sells or someone up the line decideds to spend the money on cleaning and repairs. Meanwhile the water and electric are off. Unfortunatly the refrig is still full and sometimes so are the toliets. YUCK YES!
So be prepared. When you go wear sturdy shoes, jeans and long sleeves. Spray your pants legs with flea spray BEFORE going in. If the home had animals their friends will be waiting and hungry. Take a good strong flashlight. When windows are boarded up rooms get dark and no electric means really dark. Do not be surprised if you come in and find that a homeless person has broken in and is living there. Make alot of noise when you come up to the place and walk around the outside first talking. This will give the person a chance to leave before you walk in and wake them.

Hope this helps.
Feel free to PM me if you have more questions. I've done this for 20 plus years and have seen it all. Including one dead body left behind in a refrig.

Laurie in Bradenton

[pbobber]

how to buy a HUD home
http://www.hud.gov/offices/hsg/sfh/reo/reobuyfaq.cfm

HUD homes for sale
http://www.hud.gov/homes/index.cfm