Los Angeles has the second largest population among U.S. cities. HUD has a big presence in the L.A. housing market and regularly sells Los Angeles HUD homes to the public. What happens is that the Federal Housing Administration, which is part of HUD, insures certain Los Angeles mortgages. The home owners who have some of these mortgages go into default, forcing HUD to buy the property at a foreclosure auction to try to make back the money. Buyers of real estate can use HUD listings in an online website to find HUD homes in Los Angeles. They can then proceed to place bids for buying the L.A. properties by selecting the services of a Los Angeles real estate broker.
Use HUD’s home listing service at hudhomestore.com/HudHome/Index.aspx to find Los Angeles properties for sale by HUD. To get to the L.A. listings, select California from the home-page map and then enter Los Angeles as the city. You will then get a listing of all L.A. HUD homes.
If you are operating under a budget or need a specific size or location, then you can use the other search parameters to find HUD properties to suit your preferences. Also keep in mind that L.A. is full of real estate investors. But if you are one of these investors, only some of these Los Angeles homes are available to you for bidding. You can see which ones are available by choosing “Investor” as the buyer type when looking for Los Angeles homes.
From the same home page on that HUD site, you can also find a real estate broker in the Los Angeles area. Select the “Find a Broker” link to get to the broker/agent search page. You can then enter L.A. or a city in the area to find a broker approved by HUD to place bids on California HUD homes.
See if you can get a mortgage loan from a local lender in the Los Angeles area. If you do not have sufficient cash to purchase a HUD Los Angeles property, then financing is a must.
Ask your broker for a list of the documents you need to place bids on L.A.-area properties. Once you have submitted all of the necessary paperwork, the broker can then place bids on your chosen Los Angeles HUD homes.
After getting a bid approved by HUD, you will then pay a deposit and complete your financing agreement for any loans. A California closing agent will then close on your Los Angeles property.
Next, you will need to file a deed with the county recorder, whether that be Los Angeles County or some other county in the area. This is a vital step that allows you to protect your ownership rights in any HUD homes in Los Angeles that you purchase from HUD.
HUD Home Listings