Maryland Foreclosures Include Bargain Priced Hud Properties

By: Bob Smith

Maryland foreclosure listings contain HUD foreclosures. HUD is the federal
government department of Housing and Urban Development. HUD does
not make loans, HUD acts as an insurance agency to banks and home
lenders who are in the business of transacting real estate closings. People
who may not qualify for standard loans many times qualify for a HUD
backed loan. With HUD backing, lenders will qualify these borrowers for a
home loan. In case the homeowner defaults on their repayment of the
loan, HUD then returns the defaulted dollar amount to the lender. HUD
then takes control of the property.

HUD foreclosure properties are evaluated and controlled by the Property
Disposition department. The Property Disposition Department initially
determines whether they will sell the property or place it with a HUD
approved broker. HUD approved brokers can buy the property themselves
or attempt to sell it. Should a broker decide to purchase the property, the
property comes to him "as is". If any repairs, small or large need to be
done, the broker would assume the responsibility for this. Additionally,
each HUD broker is paid a flat 6% commission for selling the property. If
purchasing the property, the HUD broker is allowed to subtract the amount
of their commission from the purchase price. HUD brokers use this as a
huge negotiating tool.

Some HUD properties are never revealed to the public as it is purchased
from a HUD broker as soon as it becomes available. If a HUD broker then
decides to purchase the property, fixes it, has inspections done, he then
will attempt to sell it at market price, and use conventional methods.
Persons searching for HUD foreclosures should make it a point to develop a
relationship with a HUD broker for best results. All contracts and
transactions pertaining to the closing of a HUD owned property must go
through a HUD approved broker or other HUD authorized agent.
Remember, HUD is not a lending institution, so you must arrange for the
financing of the desired property elsewhere.

When searching Maryland foreclosure listings, be sure not to skip HUD
foreclosures. HUD foreclosures are truly similar to other foreclosures, they
are simply insured by the federal government. Many times they can
provide a great home at a bargain basement price. Good foreclosure
listings should and do carry HUD foreclosures in their properties.

Foreclosures
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