Minnesota HUD Home Foreclosures

Many of the best deals on foreclosure/bank owned properties in Minnesota are the HUD Home foreclosure listings. A HUD Home is a government foreclosure typically on FHA loans that defaulted.

Minnesota HUD homes tend to be the best deals because when they appraise the home they normally get the value from the above ground finished square footage.  Thus, a home with a finished basement is not getting much or any value added to the appraisal for that finished basement.  Thus, making it a great deal compared to the other regular sales priced higher with a finished basement.

Minnesota HUD homes are listed at the FHA appraised value.  Thus, for a buyer getting an FHA loan they already have the appraisal done, saving a buyer the cost of the appraisal.  The HUD appraisals will note if there are any repairs needed to get the home up to FHA standards.  If there are repairs under $5000 a buyer can escrow money within the loan for those repairs.

Often properties with work to do will not pass FHA or the buyer or seller will have to fix the problem out of pocket.   These issues on other sales and other bank owned homes often make it hard to finance and close on the home.  However, with HUD homes in Minnesota you can often get these homes financed and closed thanks to the repair escrow.

Normally the Minnesota HUD home is not going to be in perfect shape, but most often they are a good deal and in workable shape allowing the buyer to move in and work on somethings on the home as they live in it.

Not all HUD homes are FHA financeable. Those homes normally make it to the investor bidding period.  The homes in good shape sell fast to owner occupied borrowers.  HUD Homes have a 10 day bidding period where the home is active on the market for 10 days and on the 11th day the assets manager processes all the bids and the home sells to the buyer with the highest and best offer. Most Minnesota HUD homes are not available to an investor buyer until they have been on the market 30 days.

For a free list of active HUD homes for sale in your area in Minnesota contact Chuck Carstensen, RE/MAX Results at 612-290-3809 or chuck.carstensen@results.net.