A HUD Home is a 1-4 family home owned by the U.S. Department of Housing and Urban Development (HUD) acquired through a foreclosure proceeding.
HUD offers their homes for sale through daily online auctions at HUD Home Store. Properties are first offered to owner-occupants for an exclusive period and then the auction opens up to investors.
Buyers must place their bids through a HUD-registered broker. Blackacre Properties LLC has been an authorized bidder since 2018.
Learn the Pros and Cons of buying a home from an institutional seller
Buying a HUD Home
Shopping for a HUD Home is a new process for many. First of all, the home will be vacant and secure. There will be a padlock on the front door and “no trespassing” notices in the windows. Next, the electricity and water will be off (so flashlights are a good idea). Finally, once inside, the home will be completely free of furnishings, belongings, and sometimes appliances.
Our best advice when evaluating a HUD Home – bring your imagination! Try to picture the possibilities and what it would look and feel like with your finishes and furnishings.
HUD’s home buying process is easy and predictable:
- All homes are vacant and clear of furnishings and clutter
- A HUD selling agent (like Blackacre) can show the property by appointment
- Every home comes with a Property Condition Report outlining the functionality of the home’s systems
- All homes are on HUD Home Store for daily auction bidding
- Home inspections are available within 15 days of having a signed contract
- Blackacre can provide Comparative Market Analysis reports to help determine the market value
HUD Homes come in “as is” condition without warranty – no repairs are made before closing. And HUD is exempt from Massachusetts’ smoke and carbon monoxide detector law.