Kitsap County Real Estate  Ron Kimball of New Visions Reality LLC

HUD HOMES & VA Foreclosures Homes for Sale and Loan Information

How Do Bank REO Properties Become HUD REO Properties?

The Department of Veteran Affairs and the United States Department of Agriculture also have a similar process.


The US Department of Housing and Urban Development's (HUD) Real Estate Owned (REO) properties are a result of the Federal Housing Administration (FHA) paying a claim to a lending institution on a foreclosed property which was financed with FHA Insured Mortgage and the lender transferring ownership of the property to HUD. Typically, title to the property is not transferred (or the claim paid) until the previous owner is evicted from the property. Normal, after the home is transferred to HUD the property will go up for auction the their website (shown above).


Almost any REO Property you look at will have room for improvement. But the more that needs to be done to a home, the less you’re going to have to pay for it. HUD Homes, because they’re sold in “as-is” condition, can often be a great, affordable opportunity for the fixer-upper. Many are in fine neighborhoods and offer outstanding values. And while some HUD Homes do qualify as “handyman specials,” many are in very good condition.

HUD does not warrant the condition of its properties, but will give you the information it has about the condition of the property you’re interested in. You can use this information in formulating your bid.

The appraisal process is HUD’s primary tool for determining the listing price (recommend starting bid) of the properties. FHA appraisers provide preliminary verification that FHA’s Minimum Property Requirements (MPR) for existing housing and Minimum Property Standards (MPS) for new construction have been met for properties evaluated as “insurable” or “insurable with repair escrow” prior to being listed for sale.

If you're buying a HUD or VA Home, you're required to use a real estate professional. While purchasing a HUD or VA Home may be easier than many private real estate transactions, there are still some requirements which must be met--certain forms that must be used, and procedures that must be followed. But these requirements are clearly stated in advance. I will be there to help you through it all.

There are no negotiations between buyer and seller when you buy a HUD or VA Home. There's no haggling about price. Buyers submit a bid through the real estate professional, all bids are reviewed on the same day or pre determine 5 day period of time with the home going to the highest bidder. HUD or the VA responds promptly to your offer, and if it's accepted, closing on the home will usually occur within 30 to 45 days.

Making an offer to buy a HUD Home is often much easier than the process of buying a home on the private market. You'll submit your offer through a real estate broker, via the Internet using information from the HUD contract form. The person making the highest acceptable bid is generally awarded that HUD home that day. Before submitting a bid all potential buyers must be pre approved.

Sometimes HUD or the VA accepts an offer that's less than the listing price, depending on market conditions and the length of time the property has been on the market. Sometimes buyers make bids higher than the listing price, if they believe the market conditions demand it, or if the home is particularly appealing.

You must use a real estate agent to submit a bid for Both VA and HUD Homes HUD currently accepts bids through the Internet from agents. Please give me or New Visions Realty a call so can go over the bidding at (360) 710-2607 or Toll Free at (888) 605-4525 or E-mail:

As a public service, here are the links for major HUD and VA pages of interest to consumers, and information about loan programs.

For HUD REO Properties:


For USDA REO Properties:

Click Here To See This Week's Hud Homes in State of Washington

100 questions & answers about buying a new home

Graduated payment mortgage insurance

FHA Mortgage Assistance for Low- and Medium-Income Borrowers

FHA Loans for Manufactured Housing

FHA Mortgages for Members of the Armed Services and NOAA

FHA 203K Rehab Mortgages

Section 203(k) insurance enables homebuyers and homeowners to finance both the purchase (or refinancing) of a house and the cost of its rehabilitation through a single mortgage—or to finance the rehabilitation of their existing home.

USDA also has some loan programs: Section 502 Single Family Housing Loan Programs

502 Direct Loans
Rural Housing Direct Loans are loans that are directly funded by the Government. The Section 502 Direct Loan Program provides low and very-low income families the opportunity to acquire, build, rehabilitate, or improve single family dwellings in rural areas.


Under this program, applicants receive a loan directly from USDA Rural Development. The standard term for a Section 502 loan is 33 years. However, loans may be made for a shorter term, and in some cases for 38 years. Each loan is made at a fixed rate established by the Agency and payment subsidies are available to many (income eligible) borrowers to reduce monthly loan payments.

Click to see current Washington State VA Homes for sale -- *Currently listed in MLS*

Information on VA Loans

You must use a real estate agent to submit a bid for Both VA and HUD Homes
HUD currently accepts bids through the Internet from agents

To see current digital pictures of the VA Homes for Sale on the VA list in the Kitsap County area you can join my VA Buyers program where I e-mail information to you when a new home enters the list. Just provide me with a little information for what you area looking for

Let me know if I can help you purchase a HUD or VA Home!

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Ron Kimball Ron Kimball helping buyers and sellers in their real estate needs {Lighthouse}

New Visions Realty LLC

1616 Ellis Court Suite 218

Port Orchard WA 98367

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