Buying a HUD House in Battle Creek, Michigan
Buying a HUD house in Battle Creek, Michigan requires that you follow an exact required procedure. The first thing you will need to have is a REALTOR that is licensed in the State you are buying the home in and he or she is registered with HUD through their brokerage.
You will also need to have worked out ‘how’ you are going to buy the home before you attempt to place an offer. This means you will need either ‘proof of funds’ or ‘proof of financing’ in order to buy a home, and these need to be organized before you place an offer.
The reason for this is that once an offer is accepted, your REALTOR® is required to send a fully signed purchase agreement package to HUD within 48 hours and this needs to include your proof of funds or proof of financing. If this is not done, your offer can be cancelled and the home placed back on the market for sale to others.
Buying a HUD house in Battle Creek, Michigan or anywhere also requires an earnest deposit. According to the new HUD rules as of 2010 require the funds to be certified funds from a bank payable to HUD. This amount is $500 for offers up to $49,999 and $1000 for those above $50,000. The amount cannot be larger or smaller, even if you want to place a larger earnest deposit down.
Buying a HUD house in Battle Creek, Michigan also means that you must examine the bidding period for the house. HUD has a defined period for ‘Owner Occupant’ bids only, which is usually when the home first comes on the market. During this time period, only those that are going to actually live in and occupy the house for 12 months can bid on the home, and investors cannot.
The investor bidding period is called the ‘All bidders’ period. During this time owner occupant bidders and investor bidders can bid on the home, and the bidding closes out daily. For more information about buying a HUD house in Battle Creek, Michigan, give me a call at: 269-441-8182 or contact me through my website at: www.michaeldelaware.com.