HUD Homes are nothing new. In fact they have existed on the market as soon as the concept of foreclosures came about. There is a new concept in the works called the Distressed Asset Stabilization Program. This program works with HUD and FHA to sell defaulted single family mortgages. When a property is foreclosed but sits vacant it means the bank is holding on to a property that is not earning any more. It is difficult for the banks to continue this for a long period of time especially when there are so many HUD homes.
Buying HUD homes: The state of the market
Currently the market is seeing a lot of momentum. There are more buyers out there trying to find affordable mortgages and homes they can purchase. With the high number of HUD homes on the market it is easier for the buyer to find something they can afford. Banks are trying to avoid unnecessary foreclosures though. They are looking to stabilize the market even more by increasing the number of loans they have available for investors to purchase. An investor could purchase a home and its mortgage allowing the property to be rented, thus saving on the amount of HUD homes available on the market.
Why Home Buyers can benefit from HUD Homes
Home buyers can benefit from HUD homes even if they are not investors. This type of home is on its way to foreclosure. It means the home is going to be up for auction soon. If a buyer needs a deal HUD homes can provide it. They are often sold in a short sale meaning the cost of the home is significantly lower than the value. It is easier to get a loan when the value is proven to be higher than the necessary mortgage.
Affordability is one reason to consider buying HUD homes. Another is the state of the home. Many of these homes have been damaged or at least need some repairs. Sometimes when the defaulting owner moves out they take everything including the kitchen sink. At a significantly lower cost HUD homes can be decorated in the way the home buyer wants. RealtyStore.com offers more information about HUD Homes and provides the current foreclosure listings in your area. Every state has foreclosures right now where some have more than others, making it possible for you to find an affordable new home for your budget.