As the nation’s capital, Washington, D.C. is a large area with very diverse kinds and price ranges of real estate. The capital is no stranger to the financial woes that visit the country from time to time. This sometimes creates an opportunity to find a cheap home through the HUD federal agency. D.C. HUD homes go on the market because the agency needs to sell them to recover financial loss caused by a foreclosure of an FHA-backed mortgage. The agency needs to sell these HUD homes in D.C. to avoid a serious loss. HUD lists the available D.C. properties on an online website for listing HUD-owned real estate. After finding a suitable house, buyers can then send in a bid to HUD through the services of a Washington, D.C. real estate broker.
Go to this HUD listings website at hudhomestore.com/HudHome/Index.aspx. From the main page of that site, click on “DC” on the map to find the D.C. HUD homes. Of course, if you know this area, you know there are many Maryland and Virginia cities in this same locale. You will need to enter the name of those cities separately to find HUD properties near but outside the district limits.
You can refine your search to find a wide array of homes. For example, you can find only HUD homes in DC that cost less than $175,000 and also have 3 bedrooms.
As in all states, only local approved real estate brokers can submit bid papers to HUD. To find these brokers, use the listings website home page to choose the “Find a Broker” link, which leads to a search engine that finds local brokers and agents. Select “DC” as the state to find the brokers that can assist you in bidding on DC HUD homes.
An important part of your bid to buy a HUD D.C. home is proof of financing. You will need to speak to mortgage lenders in the Washington, D.C. area to see about getting a loan for this purpose.
Now that you have the financial means to buy a property from HUD, you need to get your DC broker to finish up the bidding process. Keep in contact with your broker and supply any additional necessary documentation.
The last person to get involved in the process of your home purchase is a closing agent. HUD uses these agents to close on the HUD property after it accepts your bid. Before the closing, you will have to go back to your lender and arrange the financing to pay full price at closing time.
You need to get and file a deed whenever you buy a D.C. HUD home. Call the mayor’s office and ask where the real property records office is for filing property deeds. File in that office to protect your property interests.
HUD Home Listings