What happens when a homeowner with an FHA-guaranteed loan stops making his house payments? After some time, the United States Department of Housing and Urban Development, of which FHA is a part, forecloses on the home, repossesses it and then re-sells it.
So, why am I telling you this? Because HUD homes represent an amazing value to those on tight budgets, such as first-time buyers.
How it Works
Purchasing a HUD home is a bit different than the standard buying process. First, you’ll need to find these HUD homes for sale in Minneapolis, which is easy, as they’re listed on HUD’s website.
Then, you’ll need a HUD-approved broker to show you the home – not every broker in the Twin Cities is affiliated with HUD, but the Kris Lindahl Team is.
When you find a HUD home you want to bid on, we submit your bid on your behalf. This last part sounds simple, but it’s not. There is a tight deadline to submit the bids and the bids themselves include more than 20 pages. Letting even one item fall through the cracks may result in your offer being rejected. Obviously, your choice of agent here is critical. You’ll need one who can write up these bids in his sleep – someone who has sold HUD homes and knows the process.
HUD Homes for Sale in Minneapolis
HUD homes are typically sold “As-Is,” meaning that HUD won’t make any repairs to the home. Furthermore, if you have a home inspection and the results are unsatisfactory to you and you decide to not purchase the home, you may lose your earnest money deposit.
That’s the bad news. The good news is that HUD homes are inexpensive and represent a huge value to buyers. Here’s an example (remember, these homes are up for bid right now and only represent a sample).
There are currently four HUD homes for sale in Minneapolis:
- Morris Park: A 2-bedroom, 1-bathroom cutie built in 1931. Priced at $92,400.
- Columbia Heights: A 3-bedroom, 1 bathroom home built in 1953. It’s priced at $49,500.
- Lind-Bohanon: Listed at $110,000 and built in 1957, this bungalow has 4 bedrooms and 1 bathroom.
- Lind-Bohanon: Another HUD home for sale in this Minneapolis neighborhood, this one is listed at $68,000. It features 2 bedrooms and 2 bathrooms and it was built in 1911.
Most listed prices of HUD homes are subject to change upon appraisal.
As you can see, there are some pretty amazing deals in Minneapolis HUD homes for sale. Contact us to learn more.