HUD (The Department of Housing and Urban Development) officiates over FHA (Federal Housing Authority).

FHA offers a loan to home buyers who qualify. FHA is not the lender.

The homes must meet their qualifications of local Price Maximums and Condition.

FHA insures to the lender that the loan balance will be paid off if the owner defaults.

Money passes from FHA to Lender. HUD is now the owner.

HUD is not in the business of renting homes. They list the homes for sale on a bid basis after obtaining free and clear title (see below).

Unfortunately for the owner, but fortunate for you, people are defaulting on their fairly recent acquired loans and go into foreclosure in SoCA rapidly.

For several years during the period of inflated prices, FHA's limits were surpassed.

Hence, very few FHA loans were initiated in Southern California during this period.

The housing bubble burst. FHA increased their maximum loan limits. Lenders offered FHA loans to buyers and properties previously not able to meet the requirements.

HUD-OWNED HOME LISTS WILL GROW ON A WEEKLY BASIS - which will include properties in almost all areas.

The condition of many of the homes is clean and require little work.

Others are fixer-uppers requiring work prior to move-in.

And still many can be classified as not livable. No FHA financing available.

All the properties are sold as-is. No warranties or guarantees.

An "IE" status on a home indicates that work is needed. A list of costs to accomplish the work is included in the listing. Read on...

A FHA 203K loan is offered to you as an owner-occupant if you agree to add the cost of various repairs amounting to over $5000. Ask me about the particulars of a 203K "fix-it" loan.

It must be clearly understood that the costs on either an IE or a 203K will be included in the loan amount - NOT added to your down payment. Such a deal!!!

Loan approval is necessary. Upon winning the bid, you must fulfill the bid obligations within 48 hours.

Important: the listed price is the Appraised Price.

NO FHA FINANCING CAN BE BASED ON ANY OFFER OVER Appraised/Listed PRICE.

OVERBIDS: must be in "CASH."

As an investor, homes are available to you after a 10-day owner-occupied period. They are bid on a Daily Basis. Such a deal!

Bidders can request closing costs (up to 3% of the sales price) be paid by HUD.

The homes are sold through a HUD-approved agent, me, on a bid on-line basis within certain time limits. Investigation of the website below will familiarize you as to the process. OR you can simply call 909 653 4341.

The financing of these homes is the responsibility of the buyer. I can put you in touch with a HUD Expert Lender, Larry Rollins, ICM, 909 821 3930.

A short escrow of 45 days is strictly enforced.

This on-line bid process is not to be confused with properties being sold at auction.

An auction allows you to keep abreast of your competition's bid amount. HUD's system makes competition as fair as possible. It is a closed bid.

Non-profits, teachers, police and fire personnel are given the option of purchasing homes in revitalization areas.