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Buying a house for 50% off listing price

Posted by Susanna Haynie on August 31, 2012
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HUD Good Neighbor Next Door ProgramHave you heard of the HUD Good Neighbor Next Door Program?

This might sound like fiction but it’s really not. There are only certain criteria that have to be met and you are able to buy a home for 50% off the listing price.

The special program is called the “Good Neighbor Next Door” Program and it  supported by the U.S. Department of Housing and Urban Development for its HUD owned properties.  A HUD home is a 1-to-4 unit residential property acquired by HUD as a result of a foreclosure action on an FHA-insured mortgage. HUD becomes the property owner and offers it for sale to recover the loss on the foreclosure claim.

Single home families in HUD’s revitalization areas will be listed for the Good Neighbor Program for 5 days.(so check the HUD website frequently). There are usually not many and don’t expect a palace, but getting a house or 50% off is not bad either.

However, you must be a enforcement officer, teacher, firefighter or emergency medical technician. There are also a few more requirements that have to be fulfilled:

  • Live in the home as a primary residence for at least 36 months (3 years)
  • Submission of Earnest Money deposit = 1% of the list price, not to be less than $500 and not to exceed $2000 (Earnest Money is subject to forfeiture)
  • Purchasers and spouses may not have owned title to any HUD property in the last year, nor have ever partaken in the Good Neighbor Next Door program, including the program’s earlier versions
  • Purchaser is responsible for all closing costs and broker commissions
  • Purchaser must purchase within City, County, or State in which they work based upon type of employment (State Patrol purchase in State; Teacher purchase in city where school is located)

Teachers: Teacher if you are employed as a full-time teacher by a state-accredited public school or private school that provides direct services to students in grades pre-kindergarten through 12, you qualify!

Visit the HUD homestore!

Visit the HUD homestore frequently to see if there are listings in Colorado that are marked “lottery”. Simply chose “CO” in the state field enter a city (please note that you will not be able to fit the whole name into the box, you’ll be short the “s” at the end of  “Springs”). Then chose a buyer type: Good Neighbor Next Door.

==>You will need to get pre-approved to offer on a HUD home!

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