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HUD’s Good neighbor program, Half price homes
Want to buy a house at half price?
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The Good Neighbor Next Door program is administered by the Federal Housing Administration. Buyers in the program pay half the
house’s appraised value and commit to live there for three years, but there are some restrictions on who can buy them and where the home are located.
Four things to know about the Good Neighbor Next Door program:
1. It’s not available to everyone: Only Law enforcement officers, pre-Kindergarten through 12th grade teachers and firefighters/emergency medical technicians can participate. Here’s the complete requirements to qualify.
2. Revitalization areas: According to the web site Revitalization Areas are HUD-designated geographic areas authorized by Congress under provisions of the National Housing Act. Revitalization Areas are intended to promote “the revitalization, through expanded home ownership opportunities, of revitalization areas.”
3. Pricing: You have to pay the HUD listing price when bidding on a Good Neighbor Next Door Home. The 50% discount is then taken off of this price.
4. 3 year occupancy required: The buyer gets a “silent second” mortgage for the other half of the sales price. This is a loan that has no principal or interest payments, and if the buyer remains in the house and keeps up his payments for three years, that second mortgage is forgiven.
If the buyer moves out of the house within three years, the program can charge for a prorated portion of the silent-second mortgage. Homeowners are required to certify on a yearly basis that they still live in the home.
The owner can sell the home after 3 years and keep any equity or appreciation in the home.
There are currently 8 HUD homes in Colorado that qualify as part of the Good Neighbor Next Door Program, including one in HUD Home in Colorado Springs on:
3613 Queen Ann Way Price is $85,000 MLS 604877 1102 square ft Townhome
Bid Submission is due on 12-16/2010
To find out more information about Colorado Springs Foreclosures, Call ……
Kathy (719-287-1049) KTorline@msn.com
Bids on Colorado Springs HUD homes are handled 2 different ways
Bids on HUD homes are handled differently depending on the property classification
Search for Colorado Springs Foreclosed Homes
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There have been many changes to how HUD homes are sold in the US, including that there is now only one web site to view HUD homes sold anyplace in the US, www.hudhomestore.com. One of the other major changes is how bids will be accepted for the homes. Here’s a quick overview of the process:
FHA Insurable Colorado Springs HUD Homes
When HUD places FHA insurable HUD homes on the market, there is a 10 day period where only bids by owner occupants, non-profits, and government entities will be accepted. HUD will wait until the end of ten days to accept any and all bids and make a determination of acceptance after this 10 day period. If no acceptable bid is made, the home is then opened to only owner occupants for an additional period of 20 days.
If no accepted bid is made after 30 days, then the listing will be opened up to investors as well as owner-occupants. There is no time period for acceptance and all bids will be accepted on a first come basis.
Note: I did some research as I was writing this article to see if I could come up with a definition for Insurable vs. Non-Insurable and wasn’t able to find a clear definition.
FHA Non-Insurable Colorado Springs HUD Homes
For non-insurable HUD homes, the process is much different. These homes will be available to owner-occupants for a period of only 5 days. After the five day period, HUD will determine which, if any, bids to accept. After the initial 5 days it will be opened up to investors as well as owner-occupants.
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To find out more information about buying a home in Colorado Springs or Manitou Springs, call ….
Kathy (719-287-1049) KTorline@msn.com
Top 3 websites for home buyers
The following information is the third in a series of Buyer Tips to provide tips for both the first-time home buyer and the most experienced home buyer. The goal is to help the consumer to become better educated about purchasing real estate in Colorado Springs and the surrounding area. This article includes tips #7 – 9
For a FREE Buyer’s Guide, Email KTorline@msn.com
Home Buying Resources on the Internet
As I started to put together this article, I originally was going to write it about the wonderful resources that HUD provides on the Internet, but as usual, my blog article evolved into something much more. The Internet provides all of us an amazing opportunity for education, and home buying is no exception. Remember, knowledge is power.
Tip #7: My favorite site for Home Buyers: HUD web site. In fact, when you google “buying a home”, the first site that comes up is HUD’s site. The site provides an easy way to find out about all of the loan products offered through HUD/FHA, but equally important it offers perspective buyers great advice on all types of things. One of my personal favorites is the quick easy list they have on the 9 steps to buying a home:
Nine steps to buying a home
- Figure out how much you can afford
- Know your rights
- Shop for a loan
- Learn about homebuying programs
- Shop for a home
- Make an offer Read the rest of this entry »
