HUD Homes

HUD Promoting Homeownership

Equal Housing Opportunity

Marshall & Associates is a local listing Broker for HUD homes in greater Sacramento area and beyond. As so, we welcome the opportunity to answer all of your questions, educate you about the HUD buying process and help you reach your goal of home ownership. Think of us as your complete resource center to buying a HUD home. We have set up this site to answer frequently asked questions and provide a direct link to search all the HUD homes that are currently available.

To read FAQ's about buying a HUD home click here:

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Q. What is a HUD Home?

A.The Federal Housing Administration (FHA), which is part of the Department of Housing and Urban Development (HUD), provides federal mortgage insurance which insures that mortgage lenders will be reimbursed in the event home buyers default on the mortgage. When a lender is forced to foreclose on an FHA-insured single family home, townhome or condo because the owner can no longer make the payments, the lender can file a claim with FHA for the balance due on the mortgage and convey title of the property to HUD. A HUD home is, therefore, is a one-to-four unit residence acquired as a result of a foreclosure on an FHA-insured mortgage.

Q. So how are HUD homes sold?

A. When a HUD home becomes available for sale it is listed both in MLS and on their official website: Only HUD registered real estate brokers who are properly registered with HUD may show these homes and submit contracts online for purchase for potential homebuyers. All HUD homes are offered on a priority basis to owner occupant purchasers (people who are buying the home as their primary residence). Following the priority period, unsold properties are then available to all buyers, including investors. HUD does not provide direct financing to buyers of HUD homes. Buyers must obtain financing through either their own cash reserves or a mortgage lender. All HUD homes are sold strictly AS-IS. HUD does not make any repairs or provide any warranties on the houses, nor does HUD guarantee the condition of any house. As a buyer you must make sure the home is in a condition you are willing to accept.

Q. Do I need an agent to make an offer?

A. You cannot put in an offer on a HUD Home by yourself. You must use a Selling Broker who is licensed to sell HUD Homes to represent you, or you can go through the Listing Broker for the home.

Q. What is the Good Neighbor Next Door Program?

A. Law enforcement officers, pre-Kindergarten through 12th grade teachers and firefighters/emergency medical technicians can contribute to community revitalization while becoming homeowners through HUD's Good Neighbor Next Door Sales Program. HUD offers a substantial incentive in the form of a discount of 50% from the list price of the home. In return you must commit to live in the property for 36 months as your sole residence.

How the Program Works:

Eligible Single Family homes located in urban revitalization areas are listed exclusively for sales through the Good Neighbor Next Door Sales program. Properties are available for purchase through the program for five days.

How to Participate in Good Neighbor Next Door:

Check the listings for your state. Follow the instructions to submit your interest in purchasing a specific home. If more than one person submits on a single home a selection will be made by random lottery. You must meet the requirements for a law enforcement officer, teacher, firefighter or emergency medical technician and comply with HUD's regulations for the program. HUD requires that you sign a second mortgage and note for the discount amount. No interest or payments are required on this "silent second" provided that you fulfill the three-year occupancy requirement. The number of properties available is limited and the list of available properties changes weekly.