The process and the homes may be considered disadvantages when buying foreclosed South Carolina homes from the federal government
The government is selling single and multi-family homes that had Federal Housing Administration (FHA) backed mortgages and are now in foreclosure or pre-foreclosure.
Buying foreclosed South Carolina homes from the federal government has advantages, like purchasing a home for less than market value. Buying South Carolina homes foreclosed by federal government agencies also has some drawbacks. It is important to understand the pros and cons of buying government foreclosures before viewing foreclosure listings.
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When a borrower defaults on a FHA-backed mortgage, the Department of Housing and Urban Development (HUD) takes possession of the home and sells it as close to market value as possible. If you are interested in buying South Carolina HUD homes, you may get a single-family or multi-family home at a good price. If you plan to use a multifamily home as a rental property, buying a HUD foreclosure can reduce your costs and increase your profits.
Another advantage of buying foreclosed South Carolina homes from the federal government is that there are many properties available. At any given time, there may be more than 100 government foreclosures for sale in Columbia, Lancaster, Rock Hill, Greenville and other areas of South Carolina.
Because there are so many HUD properties, you will be able to choose the home that has the features and amenities that fit your needs. HUD does not allow investors to bid on a home until it has been on the market for at least 30 days, so if you plan to live in the home, you have an advantage over investors.
You may consider the HUD bidding process a drawback. You have to work with a HUD-approved real estate agent to place bids on HUD homes. You can use cash or get financing from the lender of your choice. Regardless of how you are paying, the government can reject your bid.
Another potential drawback is that HUD foreclosures are sold as-is and may require extensive repairs or renovations before you can live in the home. You can get homes inspected before purchase to assess the money needed for improvements.
Despite these disadvantages of buying foreclosed South Carolina homes from the federal government, you can still find very good deals on a HUD home for your family or for an investment property. Additionally, the FHA has all types of mortgage loan programs for HUD homes, including one for fixer-upper properties. Ask your lender or a HUD housing counselor which loan program would be the best for you and your prospective home. If you are ready to start shopping foreclosed properties today, go to Reply! for real estate lenders and listings in your area.