Phoenix HUD Homes

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Phoenix HUD Homes in Phoenix Arizona

View for free the current HUD, VA, bank foreclosure, fix-up, and pre-foreclosure properties available in the metro Phoenix, AZ area. 

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Click HERE to search Phoenix HUD Homes for sale in Phoenix, AZ and surrounding areas

Phoenix HUD HomesA Phoenix HUD home is a 1-to-4 unit residential property acquired by HUD as a result of a foreclosure action on an FHA-insured mortgage in the metro Phoenix area. HUD becomes the Phoenix property owner and offers it for sale to recover the loss on the foreclosure claim.  HUD, an acronym for the United States Department of Housing and Urban Development, is the federal agency that oversees the resale of “HUD homes” in Phoenix, AZ.  HUD homes refer to foreclosed properties that were conveyed to HUD when homeowners fail to make payments on their FHA (Federal Housing Administration, a sub-agency of HUD) insured mortgages.

The process of buying a Phoenix HUD home differs from other residential real estate.  In general, it is important to know the requirements that HUD mandates its potential clients to meet, how offers are presented and the nuances that each contract may present, and the different types of properties that HUD sells to the general public in Phoenix.  It is vital that you remember one thing while you explore the Phoenix HUD home buying process—HUD requires that all bidders must be pre-approved to purchase the home.  In other words, if you are looking to finance the property, you must make application and have a conditional loan commitment from a qualified lender.

HUD has classified Phoenix purchasers into two categories:  1) owner-occupied buyers and 2) investors.  An owner-occupied buyer is a person that will occupy the property as his or her primary residence within 30 days of the close of escrow.  An investor is essentially everybody else—a person looking to buy Phoenix real estate as an investment, someone looking for a second home in Phoenix or someone who does not qualify as an owner-occupied buyer in Phoenix.  Before the bidding can take place, it is important to note that HUD requires all buyers to be pre-approved for a mortgage (unless you plan on paying cash for the property).  Pre-approval is the the conditional approval given by a mortgage lender after a formal loan application has been taken and the lender has verified the information provided (such as employment, income, credit, etc. ).  If the hud home buyer is a cash buyer, the hud home buyer needs to provide sufficient evidence needs to show that the he or she has enough cash to purchase the hud home.  If the HUD home buyer is financing the purchase of a Phoenix HUD home, pre-approved refers to someone who has applied for a mortgage and a preliminary loan commitment has been obtained for mortgage financing in a specified dollar amount sufficient to purchase the property.

There are special programs for Arizona school teachers, Arizona police officers, and Arizona firefighters that allow the Phoenix HUD home buyer to purchase the home for 50% off of the asking price through the Phoenix Good Neighbor Next Door program.  Specifically designated Phoenix HUD homes are eligible for this special HUD home program in Phoenix.  For more information on the program, call 602-993-7509.

The process of buying or offering on a Phoenix HUD home differs from a typical residential real estate transaction in Phoenix.  In the typical residential real estate transaction in Phoenix, the buyer finds the home he or she likes and the real estate agent presents an offer to the seller.  The seller may counter the offer and this process continues until either the buyer and the seller find mutually agreeable terms to close the deal or the buyer or the seller rejects the terms and both move on with their lives.

There are hundreds of Phoenix HUD homes to search.  Our list of Phoenix HUD homes are updated by the minute as we have tapped into the Phoenix MLS and HUD reporting systems to provide you up-to-the-minute status of the most current Phoenix HUD homes.  To begin searching for Phoenix HUD homes or HUD homes in Arizona, click here to search for Phoenix HUD homes.

What is the bidding process for a Phoenix HUD home?

Jun
25

 
Phoenix HUD homes are sold using a bidding process. There's an Offer Period (initially it lasts 10 days from when the Phoenix HUD home is first placed on the market for sale), during which sealed bids are accepted from your Realtor (Green Leaf Realty agent). At the end of that period, all offers on the Phoenix HUD home are opened. HUD will generally accept the highest bid, or the bid that brings them the highest net.
 
If the Phoenix HUD home remains unsold after the initial period, bids are opened as received.
 

Posted By Rob Madden read more

How much does a Phoenix HUD home cost?

Jun
25

HUD homes are appraised, then priced at fair market value in the Phoenix area. The price of a Phoenix HUD home in need of repairs is adjusted downwards to reflect the cost of repairs the new owner must make to improve the home.  In cases where a particular Phoenix HUD home does not sell, HUD may decide to lower the price of the Phoenix HUD home to make the HUD home more attractive to Phoenix home buyers.

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What If I have second thoughts after my offer has been accepted?

Jun
25

 
The purchase of the Phoenix HUD home may be declined at any time, but may be subject to earnest money forfeiture.

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Can I make repairs on my Phoenix HUD home before I close?

Jun
25

 
Phoenix HUD properties are sold as-is with no warranty.  No repairs should be performed on a property until after the new owner has taken possession of the property.

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Does HUD give money for repairs on a Phoenix HUD home?

Jun
25

 
No.  However, a home buyer may wish to utilize an FHA 203K streamline loan to finance repairs on the property.

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How much money do I have to put down on a Phoenix HUD home?

Jun
25

 
The answer depends on the type of financing being used.  For FHA financed properties, the down payment is 3 ½ percent (3.5%) of the sales price. Contact us at 602-993-7509 to be referred to a qualified and experienced lender that knows how to finance HUD homes in Phoenix.

Posted By Rob Madden read more

What is the earnest money held for and can I get it back?

May
10

Earnest Money is a deposit towards the purchase of a Phoenix HUD home to demonstrate that he/she is serious about wanting to complete the purchase of the Phoenix HUD home.  If the seller accepts the offer, the earnest money is held in escrow by the title company until closing and is then applied to the buyer's portion of the

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Where do I find Phoenix HUD homes in a specific zip code or subdivision?

May
10

You can search for Phoenix HUD homes by zip code, city, subdivision, or by a host of other variables by clicking here.  You can also save your Phoenix HUD home searches, customize the criteria, or share your list with others by logging into the system.

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What are my financing options for Phoenix HUD Homes?

May
10

ou can use FHA or conventional financing to purchase a Phoenix HUD home. You may also purchase a property with cash.  Give us a call at 602-993-7509 and we can put you into contact with a qualified and experienced lender that knows HUD homes in Phoenix.

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What is the Phoenix Good Neighbor Next Door (GNND) Program?

May
10

The good neighbor next door program allows teachers, police officers, fire fighters and EMS personnel to purchase Phoenix HUD homes that are located in a revitalization area for a 50% discount if they live in the property for 36 months. More information is available online at http://arizona.foreclosurehomesearch.com/content/phoenix-good-neighbor-next-door-program. 

Posted By Rob Madden read more

Is it true that I can buy a Phoenix HUD home for 50% off of the asking price?

Apr
05

Yes and no.  HUD offers a program to qualifying teachers, police officers, EMT's and firefighters called the Good Neighbor Next Door program that allows them to purchase specially designated Phoenix HUD homes for 50% off of the asking price.  However for the average home buyer, there is not a program available to you.

Posted By Rob Madden read more

What happens if I can't close the sale within the time permitted by HUD?

Apr
05

You will probably have to pay fees for an extension of time on the Phoenix HUD home, usually in increments of 15 days.

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Can investors buy a HUD home in Phoenix?

Apr
05

Yes.  However, HUD offers its Phoenix HUD homes to owner-occupants for a period of time before making them available to investors.

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How does HUD decide on how much to charge on a Phoenix HUD home?

Apr
05

The listing price of a Phoenix HUD home is HUD's estimate of its fair market value.  HUD establishes value by comparing Phoenix HUD homes to similar properties sold within the community in the previous six-month period.  This is accomplished when HUD orders an appraisal to be completed on the property.  Using the appraisal report for the Phoenix HUD home, HUD sets the initial asking price and determines if the property is eligible for FHA financing or not.

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Are Phoenix HUD homes meant for low-income people?

Apr
05

Phoenix HUD homes come in a variety of price ranges, though most are affordably priced, making them accessible to low and moderate income families.

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Can I buy a Phoenix HUD home for a $1, like I saw on TV?

Apr
05

No.  HUD acquires its Phoenix properties through the foreclosure of FHA-insured mortgages.  One of HUD's many missions is to maximize the amount of money returned to its insurance fund, which it does by selling the properties at fair market value.  HUD does, however, have a $1 program for non-profits and municipalities but Phoenix area home buyers are not eligible for this program.

Posted By Rob Madden read more

Does HUD providing financing for Phoenix HUD homes?

Apr
05

HUD does not provide direct financing to buyers of Phoenix HUD Homes. Buyers must obtain financing through either their own cash reserves or a Phoenix area mortgage lender. If you have the necessary available cash or can qualify for a loan (subject to certain restrictions) you may buy a HUD Home. While HUD does not provide direct financing for the purchase of a Phoenix HUD home, it may be possible for you to qualify for an FHA-insured mortgage to finance the purchase.

Posted By Rob Madden read more

Should I have a home inspection on a Phoenix HUD home?

Apr
05

HUD does not warrant the condition of its properties in Phoenix and will not pay for the correction of defects or repairs. Since the new owner will be responsible for making needed repairs, HUD strongly urges every potential Phoenix homebuyer to get a professional inspection prior to submitting an offer to purchase.

Posted By Rob Madden read more

Who can buy a HUD Home in Phoenix?

Apr
05

Almost anyone! If you have the cash or can qualify for a loan (subject to certain restrictions) you may buy a HUD Home in Phoenix. Phoenix HUD Homes are initially offered to owner-occupant purchasers (people who are buying the home as their primary residence). Following the initial period for owner occupants, unsold Phoenix HUD homes are available to all buyers, including investors and second home buyers.

Posted By Rob Madden read more
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Investing in Phoenix HUD Homes

Investing in Phoenix HUD Homes

Department of Housing and Urban Development (HUD) REO properties are foreclosures that are available throughout Phoenix, AZ. If a Phoenix foreclosed home was purchased with a loan insured by the FHA, the Phoenix area lender involved can file an insurance claim for the balance due on the mortgage. FHA pays the lender's claim and transfers ownership of the property to HUD, which then sells the house as a Phoenix HUD home.
 
HUD begins by ordering an appraisal for the house, which helps them price it at the current market value for its size, location, features, and amenities. Phoenix HUD homes are sold as-is, so if the property needs repairs, HUD lowers the price to reflect the expense of projected repairs. Phoenix HUD homes are sold with a guarantee of title that allows the buyer and new lender, if there is one, to purchase title insurance policies.
 
Phoenix HUD foreclosures include many types of properties, such as single-family homes, duplexes and fourplexes, condominiums, and townhouses. They are sold through a sealed bidding process, and bids must be submitted on special HUD forms. Bids must be submitted through a real-estate agent.
 
HUD has a short initial offer period during which the first bids are accepted. Bids on the Phoenix HUD home are collected, but they remain sealed until the offer period ends, then all are opened at the same time. If HUD accepts one of these bids, it's the one that best covers HUD's investment in the property. If no bid is selected during this first round, all future bids are opened as they are received.
 
The winning bidder is usually notified within a day or two after bids are opened, and a closing date is scheduled to take place usually 45 days from the date of acceptance. A HUD home buyer can sometimes buy additional time by paying extra fees to HUD. If the buyer fails to close, HUD can keep the buyer's earnest money deposit, so don't bid on a HUD home unless you're sure you can get the funds to purchase it.
 
Investors are not allowed to bid during the first offer period because HUD prefers to sell its homes to owner-occupants. If an owner-occupant is not found during the first round of bids, investors are allowed to place a bid through their HUD approved Realtor (Green Leaf Realty agents).
 
HUD is concerned about fraud regarding owner occupancy. This is so true that they ask bidders who purchase a property during the initial offering to sign a statement that they have not purchased another HUD home in the previous 12 months and that they will occupy this home for at least twelve months. The real-estate agent must also sign a statement verifying that he has no knowledge that the buyer is an investor.
 
The price range that HUD homes typically fall in is attractive to first-time home buyers, but the Phoenix HUD homes are sold as-is, which can infer risk, especially for a first time home buyer. Inspection can be completed on the Phoenix HUD homes but investors, for example, will forfeit their earnest money deposit if they decide to cancel the purchase contract due to the condition of the home.  Ideally a Phoenix HUD home buyer should have his/her inspections completed prior to making the bid but who really wants to spend hundreds of dollars when there is no guarantee that the bid on the Phoenix HUD home will be accepted?
 
That means fixer-upper foreclosures are often left for investors who are accustomed to dealing with repairs. But don't assume there won't be competition for the properties — there are plenty of investors out there who are looking for the same thing you are.
 
Give us a call at 602-993-7509 to talk to one of our Realtors with plenty of experience dealing with HUD foreclosures. Green Leaf Realty, LLC is an approved HUD real estate company that can help you place a bid on a Phoenix HUD home. If a property is hot, you might only have one shot at buying it, because incorrectly submitted bidding packets are discarded.