HOW TO BID ON A HUD HOME
If you want to make an offer on a HUD home, you must bid through a HUD-registered broker.
Who can buy a HUD Home?Any qualified purchaser can place a bid on a HUD Home. Before making an offer, prospective buyers must have either a $500 or a $1000 earnest money check (depending on the amount of the bid) in the form of a certified check or money order, made out to "The U.S. Dept. of HUD". They must also have a pre-qualified letter written on the mortgage company's or bank's letterhead stating that they have been pre-qualified with their credit report pulled, reviewed and approved by the lender for the amount of the loan needed. Buyers paying "Cash" must have proof of available funds.
Offers must be submitted through an online bidding process
All offers must be submitted by a HUD-registered broker through the online bidding process. Offers are made via computer through the Internet. Calculations are automatically performed to determine the highest net offer to HUD. The highest bid is acknowledged by Southwest Alliance to your broker, who is notified to send in a correct, signed sales contract within 48 hours. If the contract
is not received within 48 hours or is incorrect, the home will be returned to the market or acknowledged to the next highest bidder. All acknowledged bids are subject to cancellation if prior sale, electronic error, and other conditions exist (see Disclaimers). An acknowledged bid does not constitute a sale; only a correct contract that is executed by Southwest Alliance and returned to your agent allows you to proceed to closing.
HUD homes are sold "As Is"
It is important to understand that HUD homes are sold in "as is" condition. This means that the condition of the home when you see it is what you will be buying. HUD or Southwest Alliance makes no warranties, does not guarantee the condition of any home, and does not verify that it complies with any local code or zoning requirements. You must make any necessary repairs after the purchase. HUD may make, or give you an allowance for, major system or safety repairs only if you are purchasing with an FHA-insured loan. It is very important that you get a Home Inspection by a licensed professional prior to closing on the sale to fully understand the condition of the property.
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Corpus Christi, TX