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

FHA offers a loan to home buyers who qualify. FHA is not the lender. The choice of lenders is yours.

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

When defaulted, the owner's loan is foreclosed.

Money passes to Lender, paying off the loan buyer owed the Lender. HUD is now the owner.

HUD is not in the business of renting homes. HUD lists the homes for sale on a bid basis after obtaining free and clear title.     Check out HUD's Entire US-wide list.

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

For several years during the period of inflated prices, FHA's loan 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.

Important: the listed price is HUD's FHA Appraised Price. No appraisal cost fee.

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

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

Some can be classified as not livable. No FHA financing available. (All cash or conventional loans.

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.

An FHA 203K loan is offered an owner-occupant agreeing to adding the cost of various repairs amounting to over $5000 to the loan amount. 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!!!

A loan approval letter is necessary prior to agent (me) submitting an offer/bid. Upon winning the bid, you must fulfill the simple bid obligations within 48 hours.

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

OVERBIDS: must be "All Cash."

Please be aware the bid deadline shown on the HUD Homestore website does not reflect when offers will be reviewed and awarded.

Awards may take place prior to the bid deadline.

For example: Exclusive Listing bids will first be reviewed on day 10.

If there are no acceptable bids, then bids will be viewed on day 11.

The process will continue like this until day 30.

As an investor, homes are available to you after a 31-day owner-occupied period. They are bid on a Daily Basis.

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 will familiarize you as to the process. OR you can simply call me at 909 653 4341.

The financing of these homes is the responsibility of the buyer. I suggest you contact a HUD Expert Lender, Larry Rollins, International City Mortgage (ICM), 909 821 3930.

HUD requires very attractive short escrows of 45 days.

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

An auction. i.e. ebay, 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 when available.