The Department of Housing and Urban Development (better known as “HUD”) sells a great many real estate properties that it owns in Michigan to members of the public. HUD originally purchases these Michigan HUD homes at public foreclosure auctions in Michigan. The only reason the agency buys these properties is to try to get back the losses from the foreclosure of homes that were insured by the Federal Housing Administration. This is a potentially great opportunity for home buyers to find a good deal on Michigan real estate.
Buyers should first learn how to hunt down HUD homes in Michigan with online home listings. They then enlist the services of a HUD-approved Michigan real estate broker/agent to place bids on Michigan HUD homes. The buyers than pay off the accepted bid to purchase these Michigan HUD foreclosure properties.
Step 1:
First, try to find Michigan HUD homes you might like to purchase by searching through online listings. To do this, you need to visit HUD’s listings service website at hudhomestore.com/HudHome/Index.aspx. Use the U.S. map on the main page to select Michigan. View the search results on the next page.
Step 2:
It can be time consuming to look through all the listings, particularly if you are either on a budget or need a specific size or location for your HUD Michigan home purchase. It is easy to go ahead and narrow the search results by selecting your preferred home characteristics with the advanced search features on the search results page.
Example: If you are looking for a Grand Rapids HUD home, you would enter that city. You would also enter “Owner Occupant” as the buyer type if you intend to live in the home. Investors may also buy HUD homes in Michigan but must go through an initial waiting period on some listed properties.
Step 3:
The next thing you need to do is hook up with a Michigan real estate agent or broker that is approved by HUD. Individual buyers may not place bids on HUD properties. They must use an approved agent. Use the listings website to find Michigan agents or brokers that can help you buy HUD homes throughout Michigan. You will see a “Find a Broker” option on the main page. Click that and then enter “Michigan” for the state to find Michigan agents.
Step 4:
Try to cut a deal with a Michigan mortgage lender for preapproval for a home loan. This is vital if you do not have the money in the bank to pay for the Michigan HUD home. If accepted, take the necessary paperwork to your agent.
Step 5:
Get the agent to place your bid. You need to have a certain amount of money ready before you even start this process. As much as $2000 or so may be needed before closing. A closing agent approved by HUD in Michigan will complete the paperwork to close on the home and finalize the sale.
Step 6:
Acquire a Michigan deed from HUD so you can file it in the real property records. This is what allows you to protect and preserve your ownership in the HUD homes in Michigan that you purchase. File in the county where your new property is located.
Sources:
HUD Home Listings
