Although buying a house already sounds scary, your heart might drop a little bit when your lending doesn’t go through. The question that people ask themselves is, if I am trying to buy a house from HUD and the lending doesn’t go through, am I responsible for the title, lean, and survey search?

The hard to find answer is that you pay for the pre-paid items and that the title company will eat the rest of the costs. So a few things you will have to pay for is the appraisal, any fees paid to the lender for credit reports, and the first year’s insurance premium.

Most relators won’t willingly bring up this conversation, so ask them up front about it. If you had any misconceptions or just weren’t sure, they would be able to clear everything up for you. Remember to ask early in the process.

Since HUD is the property owner and is offering the house for sale to recover the loss of the foreclosure, they will make sure they get their money one way or the other. HUD does not offer direct financing options, so know that you are on your own for that. You may qualify for an FHA-insured mortgage to help you finance your purchase, and the FHA also offers some special discount sales programs for teachers, police officers, and others if you meet the qualifications.

Overall, the best advice is to ask questions. Do your research: talk to your relator, your friends and family, and be upfront and honest about your questions and concerns.

The opinions in this post are solely those of the author. The author takes full responsibility for the content. Like all blog posts, this is offered for general information purposes and does not constitute legal advice.

This post was written by Stephen Hachey. Follow Stephen on Google, Facebook, Twitter & Linkedin.