Everyone who wants to buy a house wants to get a good deal. This can often be accomplished by looking at homes that are owned by HUD. There are many HUD homes for sale in Georgia.

What is a HUD house?

  • HUD homes are properties that were insured by FHA (Federal Housing Administration) and the owner was no longer able to make the payments on the property (due to medical problems, job loss, or other factors).
  • The lender can file a claim with FHA for the balance due on the mortgage and then transfer the title to HUD.
  • HUD homes are one to four unit residences and are found in nearly every county in Georgia.

ITEM ONE: To buy a HUD home in Georgia, owner-occupied buyers or investors must work with a HUD-registered real estate agent. However, buyers can search HUD’s database of available homes by visiting their website. A HUD registered agent is required to make an offer in Georgia. Each home is priced as listed and priced as is. The current price is the value shown by the FHA appraiser. The list price is HUD’s asking price for the property. Sometimes these two prices are the same, but many times the house is listed for less than its current appraised value.

ITEM TWO: In Georgia, a HUD Registered Agent will show you the property, help you submit a good offer, and submit it through HUD’s online bidding system. Bids are not made in the traditional Georgia contract, but in HUD’s electronic bidding system. The contract is a basic one page form, but the way your offer is structured makes a big difference in whether or not it is accepted.

POINT THREE: All HUD homes are sold as-is in Georgia, but HUD recommends that buyers complete an independent home inspection before purchasing any property. Most of the time, HUD will not make any repairs to the home, so you should consider the required repairs before making an offer. This way, you can include these items in your offer price. Always get a home inspection!

POINT FOUR: Most HUD closings occur within 45-60 days of contract acceptance. HUD gives priority to owner-occupied buyers, however there are many HUD homes that are also available to investment buyers.

ITEM FIVE: For an owner-occupied buyer who is getting FHA financing, there is a special program currently available (2009) that allows the buyer to put down just $100. Since “no down payment” mortgages are no longer available, putting down just a $100 down payment is the next best option. There are also special programs for buyers who are teachers, firefighters, and police officers. Georgia buyers have many great options when buying a HUD home!

POINT SIX: Some properties may need work done to make them insurable for FHA financing and HUD sometimes offers an escrow account to complete these repairs after closing. HUD typically provides a 15-25 page Property Condition Report to the buyer that describes the condition of the property as determined by an inspector hired by HUD’s third-party provider in Atlanta (currently PEMCO).

The HUD home buying process is a very streamlined process that can be completed without much hassle. It is essential to work with an experienced Georgia HUD registered agent who understands how the process works and can meet the required timelines.