Remember, HUD
foreclosures are bought
"as is."The buyer is
responsible for any
repairs, including major
defects.
Kemah Properties
281.851.7095
The purchase of a foreclosed home may or may not be a great buy. There are risks involved, just like
any investment. Here are answers to some frequently asked questions.


Department of Housing and Urban Development (HUD) residential foreclosures are available through
HUD approved offices. The sales process for purchasing a HUD home isn't quite the same as you'll
encounter when buying a home from an individual, so take a few notes before you go home shopping.

What is a HUD home?
The Federal Housing Administration (FHA) is a part of HUD--the part that provides federal mortgage
insurance. If a foreclosed home was purchased with a loan insured by the FHA, the lender can file a
claim for the balance due on the mortgage. FHA pays the lender's claim, then transfers ownership of
the property to HUD, which sells the home.

How much do HUD homes cost?
HUD homes are appraised, then priced at fair market value for their location.

The price of a home in need of repairs is adjusted downwards to reflect the investment the new owner
must make to improve the home.

Will HUD make the repairs?
NO. HUD homes are sold as-is. The new owner is responsible for all repairs and improvements.

How do I find a HUD home?
You must use a licensed agent. HUD employees do not work with home buyers.  Contact us if you
would like to know what HUD homes are available at this time.

Do I simply make an offer to purchase a home?
HUD foreclosures are sold using a bidding process. There's an offer period, during which sealed bids
are accepted from your agent. At the end of that period, all offers are opened. HUD will generally
accept the highest bid, or the bid that brings them the highest net. In other words, even if you offer the
asking price, another bidder may have offered more than the asking price.
If the home remains unsold after the initial period, bids are opened as received.
If your bid is accepted, your agent will be notified within a day or two. You will be given a settlement
date, usually 30-60 days from the date of your accepted contract.

Will HUD finance the home?
NO. HUD does not finance homes. You'll need to arrange for conventional or other financing. Be sure
your financing is in order before you make an offer. If your bid is accepted, and you do not close on the
house, you may lose the earnest money deposit you submitted with the offer.

Should I have a professional home inspection?
Home inspections are recommended for any home purchase. You should inspect a HUD foreclosure
before you make the offer to purchase. It will help you determine a bidding price, especially if repairs
are required.

Homes build prior to 1978 may contain lead paint, so learn more lead paint hazards before making an
offer. Other items to consider are asbestos content, buried storage tanks, and other environmental
hazards.

Can I buy a HUD foreclosure for investment purposes?
During the initial offering, HUD homes are usually available only to those who wish to live in the home. If
an owner-occupant does not bid on the home, investors are allowed to enter the bidding process.

HUD offers special home purchase programs for teachers and full time law enforcement officers.

Contact us if you have any further questions on the buying process, or call 281.851.7095

Kemah Properties. Exceptionally serving the communities of Kemah Texas, including Kemah Oaks,
Clear Lake Shores, Bacliff and League City.
Exceptionally serving Kemah Oaks, Kemah, Clear Lake
Shores, League City, Bacliff and San Leon Communities.