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Thursday, March 27th
HUD Foreclosed is pretty tight-lipped about who they are and how they work. They've been around for around 15 years, but we only know that from our own research - there's nothing on the site that gives you a background on how they work, a list of staff members, nada. HUD Foreclosed does say that they have over two million listings that include not just foreclosures but also pre-foreclosures, rent-to-own properties, and even traditional MLS listings that they consider to be a "smart deal”. We'll also point out the disclosure in the fine print at the bottom of the site: HUD Foreclosed has no official connection to or endorsement from the US Department of Housing and Urban Development (HUD).
Laggy website
To get a feel for how HUD Foreclosed works, we entered two different target areas that are currently hot in the investment market: Phoenix and Nashville. Be prepared for it to take a noticeably long time for your search results to populate: on both mobile and desktop, it took over a minute to return a list of matching properties (and if we were just regular browsers and not on a mission to evaluate this platform, we probably would have gone elsewhere, assuming by the lag that the site wasn't working).
Use filters to focus on foreclosure listings
When the site finally loaded our results, we found over 13,000 listings in Phoenix and about 5,400 in Nashville, far more than what we found on most rival foreclosure listing platforms. You'll probably want to use the filters to sort listings by the number of beds/baths and min/max price at a minimum. Under the "More Filters” dropdown, you can also get into the types of properties and filter out properties that don't fit your criteria - like rentals, FSBOs, and so on. When we applied those extra filters to only show us pre-foreclosures, foreclosures, and tax lien properties in Nashville, for example, it dropped that impressive 5,400+ number to just 230.
Register to see property details
Your results will show you images of the home, the number of beds/baths, the square footage, and the type of sale (such as foreclosure auction or REO foreclosure). In order to see the estimated price/value and the address, you'll have to register with HUD Foreclosed. You'll start by entering your name, email, and address; your zip code will likely be pre-populated based on your detected area (which is a little creepy). That's where you'll notice that you're consenting to receive informational and marketing contacts from a completely different website (ForeclosureHomes). And, if you click on the Contact Us link, it provides the address of yet another company, NSR Data Corp. We mention all of this so that you're fully aware of where your information may be going if you use HUD Foreclosed.
$1 for 3 weeks, then $49.60/month
Oddly enough, the Contact Us page is where you'll find the FAQs about how HUD Foreclosed works - and about how much it'll cost you to use the platform after your $1, 21-day trial expires. Pay attention when you're setting up your account: if you don't cancel during the 3-week trial period, you'll automatically be enrolled in the month-to-month plan for $49.60/month. You also have the option to pay $99 every 6 months or $179 for a year. However, there are no refunds offered at HUD Foreclosed, so you may not want to jump in at that level until you've really checked out the platform.
Customer service leaves more than meets the eye
When we went to check out HUD Foreclosed's reputation, we were happy to see an "A+” and accreditation from the Better Business Bureau. That's usually an indicator that a company is doing an appropriate job of responding to complaints, including the 40 that this foreclosure listing service had received in the last three years. But, in reading through those complaints (and ones we found elsewhere in places like Trustpilot), we were left with a sour taste in our mouth about how this foreclosure listing service does business.
Deceptive business practices?
It's true that they respond to all of their complaints and that most people tell the BBB that the issue has been resolved to their satisfaction. However, time and time again, HUD Foreclosed's reps have told people that they had no record of being contacted by the customer in the first place. One or two times, that might be plausible - but not across the vast majority of the complaints that describe trying to reach out in all the ways the company has provided (phone, email) and being left on hold or just flat-out ignored. We also noticed in the rants and responses that there are multiple types of subscriptions you could wind up enrolled in at HUD Foreclosed, and unless you notice and cancel each one specifically, you may think that you've terminated your membership and then discover there are still charges hitting your credit card.
Not a foreclosure listing platform we'd use
All of that feels like a lot to go through for a mediocre foreclosure listing service. It would be one thing if HUD Foreclosed was doing an amazing job of connecting potential investors and home-buyers with hot properties, but we had a hard time finding anyone saying that's the case here. This is a platform we'd skip, and we recommend sticking with the higher-ranking foreclosure listing services in our review.
Finding the perfect foreclosure property can feel like a treasure hunt - filled with potential (and lucrative) rewards but requiring careful navigation. Whether you're an aspiring investor looking to score a bargain or a homebuyer hoping to land your dream home at a steep discount, foreclosure listings can be your gateway to opportunity.
Foreclosure rates have remained relatively low in recent years, with starts near historic lows since the pandemic. According to the Mortgage Bankers Association, mortgage delinquencies have seen minor fluctuations in the last few years but have still remained far below the levels of the 2008 housing crisis. However, economic factors such as the rising costs of insurance and property taxes could potentially impact the number of available foreclosure properties in the future.
So, why consider buying a property in foreclosure? Foreclosed and pre-foreclosure homes, along with bank-owned (REO) and short-sale properties, are often sold below market value, giving you the chance to stretch your budget further. And, when you purchase from a distressed seller, you might not only save money but also help a struggling homeowner avoid deeper financial trouble, such as bankruptcy.
However, it's important to approach these purchases with eyes wide open. Many foreclosed homes are sold as-is, meaning repairs and updates are likely part of the equation. Be prepared to take on potential costs like fixing structural issues, replacing appliances, or even addressing legal challenges if the home is still occupied.
Another factor to consider is the timeline. Buying a foreclosure may not follow the typical quick-turnaround schedule of traditional home sales. Bank-owned properties, for example, often involve more red tape, which can extend the closing process. Still, for those willing to plan ahead and be patient, the savings can make the extra effort worthwhile.
When you're ready to dive in, the first step is finding reliable foreclosure listings. These services aggregate and curate the information you need, from auction schedules to detailed property data. With so many options available, how do you choose the right listing platform? Consider these criteria:
To help you achieve your real estate goals, Top Consumer Reviews has done the legwork of evaluating and ranking some of today's most popular foreclosure listing platforms. Using these services effectively can unlock some impressive opportunities, whether you're expanding your real estate portfolio or buying an affordable home for your family. Happy hunting!
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