There are many advantages to buying foreclosed North Carolina homes from the federal government
The U.S. Department of Housing and Urban Development (HUD) has thousands of foreclosed homes for sale in today’s market and hundreds of them are in North Carolina. If you are interested in a new home or an investment property, buying foreclosed North Carolina homes from the federal government can be a great investment.
As with any foreclosed home purchase, there are pros and cons when you purchase HUD foreclosed North Carolina homes. Most HUD homes had mortgages insured by the Federal Housing Administration (FHA). When the homeowner defaults on the loan, HUD pays the lender the money owed on the home and then resells the property.
Most HUD homes are sold below market value because the federal government doesn't want to own houses or manage them and there are so many foreclosed HUD homes on the market. This is to your advantage, though because you are likely to find a home that fits your needs in the neighborhood you want to live. Plus, it is easy to search HUD home listings on its website. You will need a HUD-approved real estate agent to submit bids for you if you find a home of interest.
Another excellent benefit of buying a foreclosed home from the HUD is that you will have priority over real estate investors in the first month of bidding. Investors have to wait 30 days after a home comes on the market to start bidding on the property.
There are a few financial benefits as well. In some cases, a home may come with an escrow account to make repairs on the property. Another possibility is the home may be eligible for rehabilitation programs offered by the government. It's also possible that HUD will pay for the escrow fees and a percentage of the closing costs.
The major disadvantage of buying foreclosed North Carolina homes from the federal government is, you have to buy the home as-is. This means HUD won't make any repairs to the house. A foreclosed home may be in disrepair because the previous owner couldn’t afford to fix things or because it was vacant for a long time. HUD encourages you to get homes inspected before you bid on them so you can weigh the price discount with your potential expenses.
You can't assume that all foreclosed HUD homes are a good bargain. There are excellent deals as well as homes that need major repairs. When buying a foreclosure from the government, you also need to check the property title for liens and back taxes.
Buying foreclosed North Carolina homes from the federal government has several advantages that can outweigh the drawbacks. To compare foreclosed properties for sale by other entities with HUD foreclosures, enter a zip code above.