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If you are looking for a great deal on a property in Rhode Island, a HUD owned property may be the one for you. A HUD home is considered a 1 to 4 unit residential property aquired by the Housing and Urban Development as a result of a foreclosure action on an FHA-insured mortgage. HUD  then becomes the property owner and offers a property for sale to recover their loss on the foreclosure claim.

It is important to note that  HUD homes are sold ”’as-is,”’ without warranty. This means that HUD will not pay to repair any problems. The asking price on the home will reflect the fact that the buyer will have to invest money to make improvements.

HUD Homes are sold through a bid process and you will need a HUD-approved real estate broker to assist you with that bid process.  To find a list of approved real estate brokers and/or homes for sale by HUD in Rhode Island, please visit http://www.hud.gov/homes/homesforsale.cfm.

By utilizing the web site above, home buyers will be guided to the Marketing and Management contractor for your selected state.  You will note that all HUD homes are sold by private companies called Marketing and Management Contractors. In Rhode Island, the company listed is called CitySide Management Corporation Real Estate Services.  All bidding and closing information will be processed by that company.

Interested Rhode Island home buyers should start their HUD home buying process by finding a participating real estate agent.  Any real estate broker registered with HUD may submit an offer and contract to purchase on your behalf.   

HUD Homes are usually initially offered to buyers who are buying the home as their primary residence known as owner occupant buyers.  Following this time period for owner occupants, unsold properties are available to all buyers, including investors. Each home owned by HUD is sold during a specific amount of time called an ”’offer period.”’  At the end of the offer period, all offers are opened and usually the highest reasonable bid is accepted. If the home isn’t sold in the initial offer period, you can submit a bid until the home is sold.  If your bid is acceptable to HUD, your real estate agent will be notified, usually within 48 hours. You’ll be given a settlement date, normally within 30-60 days, by which you need to arrange financing and close the purchase.

Please note that HUD does not offer financing directly on HUD owned properties.  Contact me today for more information or to apply for a  mortgage at  http://www.guaranteedrate.com/lyndamckenzie  I would be happy to help.

Lynda Mckenzie
RI license#137627/NMLS#137627
Direct:  401-524-9796
E-mail: lmckenzie@guaranteedrate.com
Web:  http://www.guaranteedrate.com/lyndamckenzie
RI Licensed- 20102682LL