What is a Residential HUD Home?
A Lehigh Valley "HUD property" is basically a Foreclosure or REO property. However, the difference is that a
U.S government entity, the U.S. Department of Housing & Urban Development, rather than a private bank or
lending institution takes ownership of the property. HUD acquires these properties through default of the
home owner on an FHA insured mortgage property.
Please see our section Foreclosures / REO Properties on this website to understand more
about the foreclosure process.
Generally, a HUD home is a 1-4 unit residential property made available to buyers who plan to live in the property.
There are many complimentary federal and state government programs available in the Allentown, Bethlehem and
Easton real estate market to assist buyers interested in purchasing a HUD property. Our discussion will talk
about some of the unique characteristics of the HUD property buying process as compared with purchasing a
REO property owned by a non-government mortgage company or institution. Please see our Foreclosure webpage
for the details of that process.
How are HUD Properties Sold in Allentown, Bethlehem & Easton?
HUD properties, like other REO properties, are usually marketed by a licensed Pennsylvania real estate agent or
REALTORŪ in PA. HUD pays the licensed REALTORŪ a commission to help the buyer find and purchase a HUD home.
The property will appear in the local Multiple Listing Service (MLS), however, it is often difficult to search
in the MLS for a "HUD owned" property. Once identified, the property can be shown by a real estate agent
or REALTORŪ using a HUD key. Offers to HUD are generally presented by a licensed REALTORŪ.
There are other websites such as HUD Homes which can be
used to identify the addresses of HUD properties. If the city/town is not listed on the site, there are no
HUD homes available in that area.
Once you have the address of the property, additional information (property reports, etc.) are available through
your local licensed REALTORŪ. And talk with your local licensed REALTORŪ about how a Lehigh Valley Home Buyer
may be able to use FHA financing to purchase a HUD Home.
What a Lehigh Valley HUD Home buyer needs to do during the research process?
- Talk with your local lender or licensed REALTORŪ to determine "how much home you can afford?
- Work with your local licensed REALTORŪ or research the web to identify HUD properties for sale in your area.
- Investigate whether a FHA mortgage loan can be used to purchase the HUD property.
- Get a copy of the "Property Report" for each property that you are interested in buying.
- Prior to making your offer, the buyer will need to decide whether to do inspections, etc.
- Identify a settlement company to research the deed, etc.
- Finish the transaction with a closing or settlement.
Can anyone buy a Residential HUD Home?
Allentown, Bethlehem, and Easton area first time home buyers, etc. who plan to live-in the property, can consider
buying a HUD home. If you are a Police officer, teacher, etc. research whether a "Good Neighbor Initiatives"
program exists for additional $$$ incentives? Working with an agent, who has HUD experience, will be an advantage.
Buying a HUD property can be a way to purchase an affordable home at a reasonable price. However, the buyer
needs to be disciplined and stick to their original offer limit as pre-determined by their Competitive
Market Analysis and inspections of the property.
The HUD Home Sale Time Line
The process to buy and take possession of a HUD Residential property may take between 15 days to 2 month
from offer to closing/settlement.
A Lehigh Valley Home Buyer may be able to use FHA financing to purchase a HUD Home.
| 
