HUD homes

Anybody?

I dont think so. They dont do that.

Thanks Donald.

I've bought HUD homes with a standard financing contingency before, so I don't see a problem with this. The only thing to keep in mind is when they accept your offer, at least for me, I had to put down a $5,000 cashier check earnest money deposit. 10 days inspection and 30 days financing contingencies.

- Tom

This is my understanding, HUD if they accept the offer you will know in like 48 hrs.Then you have to send your earnest money in at that time.
So unless you plan on keeping the house yourself, you lose your earnest money.
You do have a 15 day inspection , if during that time you decided you dont want it, you still lose the earnest money.
My understanding is you cant assign a HUD ( NOT POSITIVE THOUGH) but could do a double closing,

Hope this helped.

Curtis Fillers
(Charlotte,NC)

Thanks Tom and Curtis. I wasn't sure if HUD was different from any other bank. Is HUD and Fannie Mae basically the same as far as earnest money, etc.?

I've never worked directly with Fannie Mae for offers, but with different HUD houses it all depends on the property and city. If they're eager to get rid of it, they may be more flexible on the amount of earnest money required.

A few other comments on HUD:

- I offered $1,000 deposit by check, they countered $5,000 by cashier's check 48 hours after signing of purchase and sales agreement. They stated they had other offers and the numbers worked for me, so I accepted.

- Contract is not assignable. Specifically states that.

- Can double close, but can't sell for more than 20% profit within 90 days.

- Have to use their contract and can't alter in any way or it's void. They do allow for the standard contingencies (inspection, financing, appraisal) and I was allowed to write in the number of days on each of those (again 10 for inspection, 30 for financing and appraisal for me).

Hope that helps,

Tom

This is what I've heard:

1) HUD's flexibility depends on the city and property: Always correct.
2) HUD's flexibility depends on your earnest $ amount: That's capitalism's motto: You pay more, you get more.
3) Earnest $ amount depends on city and property: HUD will lower if no one's "biting" at that property.
4) HUD usually doesn't "bluff" when they say they have "other offers." Unlike "retail" price sellers and their agents, who do it all the time.
5) HUD won't allow assignments: 85% true at best. Several veterans on DG.com have pulled it off, usually through a personal contact they already have at HUD, made by phone, with their boss's approval (mail, e-mail, brand new contacts, and low-level grunts WON'T get it done).
6) Double close allowed: Always, provided every party involved likes your paperwork, title company, and funding source.
7) Can't sell for more than 20% profit within 90 days: I thought this was a hard and fast rule (established by law or policy), but I've read 2 vets here who claimed to have had that waived in special cases.
Have to use their contract: That's their bosses talking. Which is why the law ALSO allows you to add any extra clauses to it that HUD agrees to.
9) Standard contingencies allowed: That just goes without saying.

Hope this helps. Best of luck to you...

Many of the deals I do are hud deals so I have a little experence with them. With every offer that I have had accepted they expect the earnest money overnighted that next day. Like a bank, you can't assign but like someone said above you can always double close. With a subject to financing clause they will likely need a pre approval or a commitment from a lender.

Shirley, my advice is make an offer exactly how you want and see what happens. No matter the outcome, you will then learn what is possible and you will know more than you know now! You absoloutely cannot make money in this business without making offers. I have made a lot of foolish offers since I started, but by making those and learning I now have a very good feel for what my offers should be and how they should be structured.

Good Advice Mark.... I couldnt have said it better myself !!

Some some good info on HUDS to remember:
HUD Home is a term loosely applied to a single family home or other type of residence that was purchased by a mortgage that is backed by the Federal Housing Administration / FHA. That term also applies to a HUD home that is now in foreclosure. Once a home backed by the FHA goes into foreclosure, it is conveyed by deed back to HUD by the lending mortgage company.

Try this link for further information.

Read more: http://wiki.answers.com/Q/What_is_a_HUD_home#ixzz1nokAuMTp

Randy Bailiff
Dean Graziosi Real Estate Coach