HUD Homes

Making an Offer (7)

What would make me not eligible to buy a property?

Owner-occupants are not eligible if they have purchased a HUD property in the past two (2) years.

What Do I Need To Place an Offer?

After deciding on the home, your Agent(hopefully Chris Hancock with PSH Real Estate) will print out all the required documents for signatures. These include the HUD Purchase Contract, Owner Occupant Disclosure and any other forms required by HUD. You will also need to give your agent the Mortgage Pre-Qualification letter from your Lender and a copy of your Driver’s license. The bid is submitted online and will require your personal information for completion. This includes your name, current address, social security #(if applicable), phone and email address. After all the documentation has been received, your Agent is ready to submit your offer. The system will generate a Bid Confirmation for your records.

Do I need a Real Estate Agent to Buy a HUD Home?

You cannot put in an offer on a HUD Home by yourself. You must use a Selling Broker who is licensed to sell HUD Homes to represent you, or you can go through the Listing Broker for the home.

Who Can Buy a HUD Home?

HUD has indentified five buyer types that are eligible to purchase HUD-owned homes. Certain conditions must be met to determine the eligibility of a buyer to bid on a particular home. Only registered bidders can make offers on properties. Homebuyers must use a registered selling broker or selling agent to make an offer on their behalf.

Owner Occupant: Eligible owner occupants are individuals who have not purchased a HUD property with the past two (2) years. They can bid on homes in the Exclusive or Extended periods. Owner occupants rank above nonprofits and government agencies in the bid-selection process for Exclusive and Extended listings.

Investor: Eligible investors can bid on homes only in the Extended period and are ranked below other types of bidders in the bid-selection process.

Good Neighbor Next Door (GNND): Eligible GNND buyers can find details on the program on the following Web page – GNND buyers can bid on single-unit homes in a Revitalization Area during the Lottery phase. During the Lottery phase, GNND buyers (1) get a 50% discount off the HUD appraised value, and (2) are given preference over Government Agencies and Nonprofits in the selection of a bid-winner. After the Lottery phase, GNND buyers are not eligible for the 50% discount.

For example, if HUD lists a home at $100,000 and the home is in the Lottery phase, a GNND buyer can buy it for $50,000 provided they occupy the home as their personal residence for the required 36-month occupancy period. If they qualify for any FHA-insured mortgage program, their down payment is only $100 and they may finance closing costs.

Nonprofit: Eligible nonprofit organizations, can bid on homes in Lottery, Exclusive, and Extended phases provided they are in approved purchase areas. If the property is in the Lottery phase, the home must be uninsured. Nonprofits rank below Government Agencies in the bid-selection process for the Lottery phase, but above them for Exclusive and Extended listings. Nonprofits cannot bid for Dollar homes.

See for more information.

Government Agency: Approved government agencies can bid on homes in Lottery, Exclusive, and Extended phases provided they are in approved purchase areas. If the property is in the Lottery phase, the home must be uninsured. Government agencies can bid for Dollar homes.
See for more information.

How do I search for a property in my area?

Detailed property information of available HUD Homes can be found in your ‘My Home Finder’ Account.

You can search for all the HUD properties on Start by clicking the state on the map or selecting it from the list.

You can type in part of the street address, or part of any of the other text fields. The system will select all properties that contain in the corresponding fields the letters or numbers that you type in. You can also search by a price range, number of bedrooms or bathrooms, buyer type or property status.

When are bids opened?

The asset manager can open and accept bids on the Bid Open Date. The date and time that this can occur is shown on the Property Details screen. Bid Open dates vary according to the type of listing period that the property is currently in.

Can I Get A Home Inspection Before I Buy?

Yes, you are encouraged to get a Home Inspection. Owner Occupants receive a 10 day period for any inspections.

All HUD-owned properties we sell, are sold in as-is condition.  It pays to engage the services of a licensed home inspector to make sure you fully understand the condition of the property you are buying.  Since the condition of the properties are not warranted nor do our clients that own the properties pay for corrections of defects or repairs, we strongly advise all potential buyers to obtain a home inspection.  Ask your real estate agent or call us at 404-720-4132 if you have questions regarding scheduling a home inspection. The process may vary according to the owner of the property.

For HUD-Owned Properties:  Your Real Estate Agent must complete an inspection request form (which will be sent, with a copy of the executed contract after the bid has been awarded) and submit it to the appropriate HUD Field Service Manager (FSM) contractor office.

Your real estate agent will work directly with the FSM for permission to have the utilities turned on, submit deposit and/or re-winterization fees.  All the coordination will be with the FSM for the collection of these deposits, utilities and other timing issues for the inspection. The FSM will only allow the utilities to be turned on, if the property does not require any repairs to activate the utilities AND it is safe to do so.

Remember, all HUD homes are sold as-is with all faults.  As the buyer you may have an inspection done, at your cost – only after the contract has been executed and your real estate agent has received a copy of the fully executed document and received written permission from the FSM to conduct the inspection.  HUD will not pay for the repairs indicated in the inspection and the buyer in strictly prohibited from making any repairs on the property until after closing.