HUD home

I would put in a bid anyway. Maybe the other agencies may not purchase and you may have an opportunity too. I bought a HUD home once from a Title Company for maybe half the price it was worth. Take a try, you may never know unless you try. God Bless.

Sandra

with the hud homes there is a time frame where only owner occupants, government agencies etc. can bid which is 30 days. After that it opens up to everyone else, including investors. There is no getting around it.

What I do is, at midnight of the opening date for investors is have my agent put my offer in. They generally make their decision within 24 hrs. However, if you get your offer accepted you have to overnight earnest money and documents so make sure you have those ready.

The other government banks are the same way but only a 15 day waiting period.
Fmac,Fnma, etc.

you need to go on the hudhomestore website and find an agent there; the agents listed there are the only ones that can submit offers to HUD properties. If you're buying to live in it, you can make an offer now (you will be required to sign a document that binds you to living in the property); however, if you intend to rent the house, you have to wait until the 30 days 'exclusive' lapsed; then as an investor you can put in your offer.
You cannot assign a HUD propety, but you can flip it. You will need to funds to close.

Wishing you success,
Valerie

HUD always gives 30 days for first owner occupants. So you will have to wait until the 30 days anyway. Regardless, HUD will wait the 30 days for them to allow others to bid on the property. The minimum NET bid they will typically take in my state is 0.86 of the asking price, so after paying commission, the net bid is 0.86 of asking price. This can always change depending on how desperate they are in selling the property. Paperwork is a little more complex with HUD homes, so you need to find an experienced realtor who can handle all HUD homes. In addition, this realtor has to be registered with the HUDHOMESTORE website in order for him/her bid on the property. Hope this helps, if questions just let me know.

I talked to a realtor at REmax, a big part of their business is selling repossessed homes to investors(bank, fha, hud). According to her, in the state of Louisiana, only owner occupants can offer on the property for seven days, after that investors can offer. She said she would put in the offer, though I believe if you make a free account on that hud website, you will be able to put in an offer. She said you need to either have cash and a POF letter or pre-approval from a lender of your choice. She said the best deals are usually snapped up quick(just means you gotta snap em up quicker ). A good suggestion she made is if you have cash, make sure the amount on the POF letter isn't any more than you are offering. I don't have cash myself, so she said I would have to get the POF letter from my cash buyer. Another good suggestion from her, is to send in an offer two days before investors can offer, but make the offer good for only three days. She said that way the repossessor can consider your offer, but only has a day to respond.
Good luck!

RENinja

I just put a bid on a hud home and they countered at 81% so maybe things are a little looser up here. Of course I don't have it yet, but am hoping to get a screaming deal on a hud home soon. Definitely have less competition than the other REO's.

the last 3 houses we have bought have all been HUD homes. One we paid full price of 15k ARV was 61k. Second home we paid 80% of asking which was 14k still in rehab. 3rd house we paid about. 65% of asking price we paid 35k for that one. That is what we have done so far with HUD homes.

Steve

This is all good help and gives me so encouragement to try for it. I will call the REMAX agent on the sign. Have to show my probate house that I am doing a short sale on, this buyer is 90% they want it. So will check on the HUD home later today.
Appreciate all the advice.
Cathyb what state do you live in?
Thanks Sandi

yes that's good to know. Normally, when we submit offers on HUD in this part of the country much lower than their 86%, we get an email that seller will entertain a Net of such amount, but when we calculate this Net bottom line, it happens to be 86% of their asking price. It's been happening in our local HUD listings, especially the ones going through HUDHOMESTORE.COM and HOMETELOSFIRST.COM.

I still haven't had time to call about the house, just spent most of the morning with my potential buyers for the other home I have.
But all these posts are sure helping me with how to handle a HUD property.
I was scared to ever go for a HUD home, but after seeing what everyone said on here. I think this will help me a lot when I do talk to them.
Thanks!

Hud is the same as every other bank. They often counter very high right at first and if time passes they usually significantly drop the asking price. I've heard that you can often get them for 66.6 % after they've been on the market for 90 days or more.

Thanks for the info Markl. I hope to look at more HUD homes. Just found out the house I wanted has an accepted offer already. It was a really cute house in the super location. But there will be more.
But did get my short sale with BOA done today, not to wait.
Have a great evening everyone!
Sandi

You should be able to pull up a full report on the house on HUD listing. It will list if plumbing leaks, roof leaks, if mechanicals are opperating etc. Your agent has to put in offer for you through website. Also, if you have your eye on a particular house and it goes into contract at that point, HUD will remove it from website. But dont give up on it, because alot of times banks won't finance these because of condition. If you are a cash buyer you step right in when house is listed again and you put in a offer.

Ryan

thanks for the tip. I rec'd an email today from the agent that it has an accepted offer. Because I know the house somewhat, I told her to let me know if it falls through. I still would like to try for it then. She said the posting will be coming down soon.
But I will hang in there on this one, just in case.
Sandi

Hi Sandi, your working an thats the main thing, things will happen an youll get one yet an thanks to all of you for the wonderful info, Jim