Looking Into Buying Tucson Real Estate? Look Into Hud Homes

If you have been browsing the Tucson real estate market for some time now

, you may have come across the phrase "HUD home" before. If you do not understand what that means, or feel you only have a basic understanding, let's break down exactly what it is.

What is HUD?

First it is important to recognize that HUD owned Tucson real estate is NOT section 8 rental property or low income housing. When an FHA insured mortgage forecloses, it becomes a HUD home. After the home forecloses, the lender of the property files an insurance claim with FHA. As a result, they receive compensation in exchange for the property. HUD homes are not for lease or rent, strictly for sale.

So how does HUD benefit me?

If you are looking to make an investment in the Tucson real estate market, HUD has many different benefits. It comes down to getting a whole lot of house, for a little bit of money. These are the biggest benefits of buying HUD.

"When a HUD home is put on the market, it goes onto the Tucson real estate market for its current appraised value. Even though this may sound like a minute detail, it is important not overlook the benefit. This means that you already know that the property is worth the asking price. Unless you opt for 203K financing or conventional financing, you save money by not having to purchase a new appraisal.

"HUD will take care of the attorney. When you go to an attorney's office for closing on a property, oftentimes this can cost quite a bit of money. However, there is a contracted attorney that helps close all HUD transactions. HUD will pay this fee if you use this attorney. Of course, you have the option of using your own attorney, but that expense is going to come out of your own pocket.

"HUD comes with an owner- occupant preference. This means that those that intend to use the property as their primary residence are given preference to people who simply want a second home or invest in the Tucson real estate market. HUD homes are offered exclusively to owner-occupant buyers for 30 days, after that time, investors are able to bid as well.

"It comes with a clear title. They prorate current year taxes and outstanding liens are satisfied. You can be sure that the property is yours without any issue because of the title insurance with post conveyance coverage. Once you make the purchase, the home is yours; a previous owner cannot take the property back anymore.

As you can see, there are many different reasons that looking for a HUD property may be one of the best investments you ever make in your life.

by: TucsonRealEstate

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