June 4

How are Charlotte HUD Homes Sold?

HUD homes are sold based on fair market value, which attracts both owner-occupants and investors alike. These properties are perfect for buyers who wish to move or invest in Charlotte NC.

Through HUD, homebuyers have access to quality housing options but with affordable mortgages. Investors, on the other hand, can profit from HUD homes by buying them at a lower price and selling at a higher cost.

Before buying a HUD home, it's important to know what they are and how they work.

HUD in Charlotte NC

What are HUD homes?

A "HUD home" is "a 1 to 4 unit residential property acquired by HUD as a result of a foreclosure action on an FHA-insured mortgage". This is according to The Department of Housing and Urban Development (HUD) itself.

HUD homes are formerly residential properties claimed by the Federal Housing Administration (FHA). They are purchased initially through an FHA loan but are foreclosed due to the owner defaulting in their payments. FHA will then pay the remaining loan balance to the lender and take over the property. Afterwhich, HUD will now sell the home but at a lower cost.

Though affordable, these properties are sold "as-is". This means all the necessary repairs have to be done by whoever wins the bid for the property. The cost of replacing flooring and interior painting are just some of the expenses that a HUD homebuyer needs to pay.

How do HUD home sales work?

HUD homes are not on the usual home listings you browse through when looking for homes for sale in Charlotte. The up-to-date list of available HUD real estate-owned (REO) single-family properties is on the HUDHomeStore.com.  This offers the public a centralized location where they can search for HUD properties for sale in the United States. 

Charlotte NC Real Estate

HUD homes are sold at an auction, and a HUD-certified real estate broker is required to bid on your behalf. Before submitting a bid, though, your broker will advise you to personally view the home and review the Property Condition Report. If your bid is accepted it is strongly urged that you have the property inspected. 

For Insured properties (FHA will finance on the property), only owner-occupant bids are accepted on the first 15 days (Uninsured homes the wait period is 5 days for investors) after the property is listed. HUD homes are first offered to owner-occupant buyers looking for a primary residence. This is to give Owner Occupants an opportunity to buy the home before it is offered to investors. To qualify, the Owner Occupant buyer cannot have  previously purchased a HUD home purchase in the past 2 years. The owner-occupant must also live in their newly purchased home for at least 1 year.

HUD will then contact the agent who submitted the winning bid to inform their client about the settlement date. HUD wants to sell these homes as soon as possible. In fact, the buyer who wins the bid only has 30-60 days to close.

HUD homes in Charlotte

Aside from it being a requirement, hiring a HUD registered agent results in a hassle-free HUD home buying process too. If you have further questions about HUD homes, call me, Nancy Braun, at (704) 997-3794. As a registered HUD real estate broker in NC and SC, I know what you need for a successful HUD home purchase in Charlotte and its surrounding cities in North Carolina, as well as in South Carolina.


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Charlotte HUD Homes, Homes in Charlotte NC, Nancy Braun, real estate in Charlotte NC


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