Yes, HUD has chosen Arizona to hold their first ever public auction with $100 down payment and up to 3% of your closing costs Saturday, March 26, 2011. So, how do you purchase one of these HUD homes at the auction? Here’s what you need to know:
1. Are you eligible?
- Have not purchased a HUD owned home in the last 2 years.
- Agree to occupy the home as a primary residence for a minimum of 12 months. Sorry, no investors or 2nd home purchasers.
2. Are you pre-qualified for a loan?
- Work with the bank or lender of your choice to determine which loan you will be using to make the purchase. The $100 down may not be an option for you.
- All homes in this auction do qualify for FHA financing with $100 down payment and 3% toward your closing costs.
3. Are you working with a buyer’s agent that is registered with HUD?
- Work with your HUD registered buyer’s agent to select a short list of auction homes based on your preferences and financing qualifications.
- View the auction properties either by appointment prior to the auction or during one of the open houses on March 19th or 20th from 11am-3pm.
4. Are you prepared with everything you need for the auction Saturday, March 26, 2011?
In order to bid, you must show:
- $1,000 Certified Check literally payable to ” HUD OR Your Full Name”. Must say OR, not and or anything else. What is not used toward your down payment or other closings costs, will be returned to you.
- Pre-qualification letter on your bank or lender’s letterhead with Your Name, Your Loan Amount, Verification of Income, and Verification of credit check.
- Photo Identification
5. Register and attend the auction Saturday, March 26, 2011.
- Show up to the Auction sales site, JW Marriott Desert Ridge, 5350 E. Marriott Dr. Phoenix, AZ 85054, as early as 11am. (480) 293-5000.
- Beginning at 11 am, you will sign in at the Auction Registration table with your agent to obtain a bidder packet and number
- Solicit any one of the various Hudson & Marshall bid assistants for any questions you may have.
- Once you are the winning bidder, a Hudson & Marshall staff member will help you with the contract signing and post auction process to close on your new home.
All bidders WILL be charged an extra 5% of winning bid that will be added to the final bid amount. Your final purchase price will be reflected as the bid amount + 5% = total purchase price. If the total purchase price is higher than 100% of the appraised value, the difference must be paid in cash, the $100 down payment program will be voided and 3% down payment will be required. In other words, the special financing only applies on final purchase prices of appraised value or less. Otherwise standard FHA financing applies. So be mindful of your bid plus the 5% fee. All HUD homes are sold in AS IS condition and earnest money is not often returned.
HUD will ONLY treat termites for Owner Occupied primary residents using the FHA $100 down ONLY if termites are reported in writing by a licensed termite inspector.
Not all HUD homes will be involved in this auction. See each Arizona HUD listing for their individual terms. For more information about the properties and the auction, visit HUDHouseAuction.com and contact a HUD registered realtor.