Like all U.S. states, foreclosures can provide a potentially lucrative chance to get a great deal on a house in Minnesota. One of the major sources of foreclosed properties in Minnesota is the Department of Housing and Urban Development. HUD buys foreclosed properties when the Federal Housing Administration insures a mortgage that later goes into default when the owner fails to keep up on the payments. HUD then allows members of the Minnesota public to place bids on these Minnesota HUD homes.
A person interested in buying one of these homes needs to find them by using home listings provided online by HUD. To place a bid, the buyer then needs to use a Minnesota real estate broker approved by HUD for placing these bids. The buyer can then become the owner of a HUD home in Minnesota by paying HUD the price of the bid.
Access the list of Minnesota HUD homes on HUD’s own listing site. You can access this site at hudhomestore.com/HudHome/Index.aspx. Choose Minnesota on the map and then look at the multiple pages of search results to find a variety of HUD Minnesota homes and land.
You can better find what you are looking for by using the search parameters at the top of the search results. The options include a price range, number of bedrooms, city where the Minnesota HUD house is located, etc. Make a list of your favorite listings. Make sure you include the listing number.
Now that you know what you might want to buy, then you can find a Minnesota HUD broker to help you. Bidders must use a broker for the bidding and buying process. Look for an approved broker or agent on the listings website (see above) by going to the home page and clicking on “Find a Broker.” You can then enter “Minnesota” for the state and even select a city to find a broker that is local relative to the HUD homes in Minnesota that you would like to buy.
Explore financing opportunities with Minnesota mortgage lenders. If you do not have the cash to buy a property outright, this would generally be a required step for your situation. Ask for preapproval by showing the lender the HUD properties that you want to purchase and whatever else (bank statements, etc.) that the lender needs to approve you.
Go back to the agent and get him to place a bid. You will have an initial earnest money deposit to make. If your bid is accepted, then you must follow through with the purchase of the Minnesota HUD home. Otherwise, you will forfeit that purchase.
When HUD Minnesota authorities accept your bid, then a closing agent will complete the process. During the interim, you will have to get approval from your lender to have the bid money delivered to HUD.
The final step in any real estate transaction in Minnesota is to file a property deed. Get a deed from HUD and file it in the recorder’s office in the county where the Minnesota HUD home that you bought is located. This is vital to protect your rights in your new Minnesota real estate.
HUD Home Listings