The Department of Housing and Urban Development sells homes in Arkansas and every other state. FHA, part of the HUD agency, insures certain mortgages throughout the United States. Inevitably, some of those home owners with a mortgage go into loan default. Such homes are sometimes foreclosed. HUD then purchases these foreclosed homes in Arkansas. This is how Arkansas HUD homes come about.
HUD Arkansas homes can potentially be a very good source of cheap houses and real estate for both owner operators and investors. Those seeking to buy HUD homes in Arkansas first need to find these HUD properties. They can then use a real estate agent to place a bid on a HUD Arkansas home. When the bid is accepted, the bidder pays the agreed-to bid to buy an Arkansas HUD home.
Step 1:
Use online HUD Arkansas home listings to find homes that fit your buying criteria. The department has a handy website at hudhomestore.com/HudHome/Index.aspx to find HUD homes in Arkansas. You can just click on Arkansas in the map on the main page to find all HUD foreclosures in the state.
Alternatively, you can narrow your search by using the “Search Properties” function. You will see these search options once the system takes you to the Arkansas HUD home listings first page.
Here is an example of how you can use this search engine. Let’s say you want to find a Little Rock HUD home that has 2 bedrooms and costs between $50,000 and $150,000. You can find the exact homes that fit that criteria by using the search preferences.
Keep in mind that some HUD homes in Arkansas are first listed for owner occupants only. If you are an investor, you cannot buy such a home until after the initial listing period. Use the “Buyer Type” option to narrow down your search for the type of buyer.
Some buyers in Arkansas may be lucky enough to qualify for special HUD Arkansas programs. For example, the “Good Neighbor Next Door” program can offer special deals on homes in this state. Other programs can even offer $1 homes under special circumstances. Use the links under the map on the home page of the HUD homes site to find these special deals.
Step 2:
Once you decide on a list of Arkansas HUD foreclosures for which you would like to place a bid, at least pay a visit to the neighborhood to make sure there are no obvious red flags (environmental problems, crime, etc.).
Step 3:
The next thing you need to do is establish a relationship with an Arkansas HUD agent that is approved to bid on the HUD properties. The HUD policy is that only approved brokers or agents may bid on Arkansas homes owned by HUD. Most agents are approved by the department, but you can easily run a search for Arkansas real estate agents by using the site mentioned above. There is a “Find a Broker” section on the main page.
Step 4:
In some cases, you now need to discuss getting a possible mortgage loan with an Arkansas bank or lender. See about getting preapproval for a loan. That way, you can take the preapproval letter to the agent, who will then add it to the bid package. Get the broker to place a bid on the Arkansas HUD property you wish to buy.
Step 5:
After the bid is placed, HUD will decide whether to accept your bid. If it does, then get with the agent and the lender to complete the purchase of your new HUD home in Arkansas.
Step 6:
One thing that is imperative when buying any real estate is to get an Arkansas deed. Once you close on the house, you should get a deed from Arkansas HUD. This deed shows your ownership in the property. File this property deed in the Arkansas county where you purchased your HUD property.
Sources:
HUD Home Listings
