Homebuyers of HUD homes can save on closing costs

Realtors who help their clients purchase a home from the U.S. Department of Housing and Urban Development (HUD) can take advantage of several benefits, according to Lani Sylvas, realtor with Coldwell Banker West of Chula Vista.

At a recent class offered by the Pacific Southwest Association of Realtors (PSAR), a local trade group for realtors, Sylvas said HUD’s bidding process, normally a 10-day period with the start and end date, provides real estate professionals with extra time to personally visit the property and submit a competitively priced bid, unlike today’s market where many for-sale homes draw multiple offers.

Buyers also can benefit from HUD’s offer to pay up to 3 percent in closing costs, she said. A HUD home is a 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.

PSAR, representing realtors who serve East County and South County communities, offers ongoing educational classes for its members. For more information about PSAR, call (619) 579-0333, or visit www.psar.org.