Denver and other Colorado cities often have HUD homes for sale. The Department of Housing and Urban Development (HUD) is the agency that insures thousands of home loans through the Federal Housing Administration. Naturally, some of those home owners with these insured properties fail to make the mortgage payments. When the homes go into foreclosure and are sold at auction, HUD buys them when placing the highest bid.
Home buyers interested in purchasing one of these Colorado HUD homes should first learn how to find HUD homes in Colorado. They then hook up with an agent who places bids for them. The buyers then pay the bid money to buy the HUD foreclosure when HUD officials in Colorado accept the bid.
Step 1:
Buyers can find HUD Colorado properties either for living in as the occupant or as “fixer upper” investment homes. Regardless of the reason for buying the Colorado home, potential buyers may go to hudhomestore.com/HudHome/Index.aspx to look for HUD homes throughout the state of Colorado. Just click on the map to get the site to return statewide search results for the homes.
Once you have the full list, you may wish to narrow down the search. For example, if you want to buy a home in Colorado Springs, enter that as the city. You can even further narrow the search by buyer type, number of rooms, price range, etc.
Step 2:
Find a broker who can place bids for you. The way Colorado HUD homes are sold is through a single property management company and multiple HUD-approved Colorado real estate agents. You can contact an agent to place bids for you. This is actually good for you, as there is little to nothing to learn. The agent will do all the paperwork for you. In fact, you are not even allowed to place your own bids.
Note: Some HUD homes in Colorado have an initial listing period for owner occupants only. You can find these by searching “Owner Occupant” as the buyer type. These homes are the ones which HUD is reserving for those seeking to actually live in a house after buying it through the department. HUD does not discourage investors at all. But it reserves some of the HUD Colorado homes for aspiring occupants for a certain period of time.
Note: The easiest way to find a HUD-approved Colorado broker is to use the HUD site mentioned above. You can see the “Find a Broker” link to the broker/agent search on the home page.
Step 3:
Now is the time when you need to speak to a California mortgage lender to see about financing the purchase of a HUD home. If you meet certain requirements, you can get a preapproval from a lender. This could be very important in getting your bid for a Colorado home accepted by HUD.
Step 4:
Get your Colorado agent to place a bid for you. If you are an investor and placing multiple bids, keep in mind that you have to pay earnest money to buy HUD homes in Colorado. You will forfeit that money if your bid is accepted and you do not complete the purchase. So do not get in financial trouble with multiple bids.
Step 5:
Close on the Colorado HUD home if the department accepts your bid. At that time, you would also need to speak to the lender to get approved on the loan. A Colorado closing agent approved by HUD will close on the home.
Step 6:
Ask HUD for a Colorado property deed. For each HUD home in Colorado that you buy, you need to file this deed with the recording office in the Colorado county of the HUD property.
Sources:
HUD Home Listings
