Most of the people don't know that even investors can buy HUD homes or HUD foreclosures. But, the criteria for them to buy a home is different from owner occupant and they must follow certain specific guidelines.
When a HUD home is listed for sale then for the first 10 days the bid is open only for those who wish to occupy the home. During that period, investors cannot place their bid. Investors can make their bid through a licensed real estate broker who can sell HUD homes and these bids are reviewed and the one with the highest bid is selected.
If your bid is selected then within 48 hours you have to submit signed sales contract and then within a period of 45 days you have to close on your investment. For investors, down payment is different as compared to owner occupants. If the home is single unit then minimum 25% down payment is required and if it is a 2-4 unit home then minimum 15% down payment is required.
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