NEW YORK ( MainStreet) -- Got $100?
That's enough for the Department of Housing and Urban Development to approve you to buy a new foreclosed home.
|A HUD program allows certain consumers from eligible states to buy a foreclosed home with a mere $100 down payment.|
The deal isn't good for everyone -- just certain states are green-lit for the program -- but the $100 down payment is a clear sign that the federal government is getting aggressive, maybe even desperate, to unload the foreclosed properties. Insiders say the government is bracing for a new wave of foreclosed homes that were owned by Countrywide Mortgage, which was bought out by Bank of America (BAC - Get Report). That alone could mean up to 40,000 new foreclosures on the market.
Here's the deal: From now until October 2012, consumers can plop down $100 and buy a HUD-owned foreclosed home (the previous minimum down payment amount was 3.5% of the home's assessed value). If you buy, you have to actually live in the residence (that's to discourage house flippers) and get financing for the home through the Federal Housing Administration.There isn't necessarily a discount on the home purchase, though, as HUD says buyers have to pay the full current list price for the property. According to the HUD website there are three steps to the process:
- Find a HUD home for sale -- check the HUD Web site for eligible properties.
- Find a HUD-registered real estate agent.
- Find an FHA lender.
- New Mexico
- North Dakota
- South Dakota
- North Carolina
- South Carolina