Upcoming Foreclosures

HUD vs Foreclosure home?

I would like to know what is the difference between the two and which is a better deal to get a home in a nicer neighborhood. I'm not worried about doing minor/moderate repairs. But which is better in terms of getting a nicer home in the best neighborhood possible and a better investment in the long run?

Public Comments

1. HUD ends up owning their houses because they foreclosed. Both can be good or bad and both can be good price or bad. A smart buyer looks at the entire market including the HUD's and other foreclosures plus all the other houses for sale. It could be your best and smartest buy is a house that is not in foreclosure at all. Don't restrict your search based on foreclosure.
2. A HUD foreclosure is one FHA owned and it foreclosed. Other lenders have foreclosures as well. There really is not difference, no advantages or disadvantages to buying either one.
3. A HUD home IS a foreclosure home, simply owned by HUD rather than a bank. Like another poster said, look at everything in your market and price range, not just foreclosures. There are tons of nicely maintained homes out there with motivated sellers that would be a great investment. If you are truly looking for a nicer home in the best possible neighborhood, that's where you should look.
4. I would recommend pre-foreclosures. The bank knows the relative value of a house than is going into foreclosure and the expenses of the foreclosure process. They will sell the house at the relative value and the owner usually agrees as this allows them to avoid the foreclosure.
5. With all due respect i completely disagree with the pre-foreclosure answer. It has been my experience that banks are delusional at what a house is worth and will just like to sell it for what is owed on the mortgage. Buying a home pre-foreclosure if tryi9ng to do a short sale will take months and usually go nowhere. I have bought several HUD foreclosures and flipped them and can attest that you can get an awesome deal with HUD. Be prepared to make quite a few repairs to major overhaul. If you follow the link you will see what was my experience through the whole HUD foreclosure process.